🇵🇬 Papua New Guinea Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 42.0% Worldwide system

Corporate tax 30.0%

GST 10.0% standard rate

Tax residency 183 days 10 tax treaties

Papua New Guinea tax profile

Data year: 2026

Tax system: Worldwide Residents are taxed on worldwide income. Non-residents are generally taxed only on Papua New Guinea–source income; passive income such as dividends, interest and royalties paid to non-residents may be subject to withholding when not attributable to a permanent establishment. The Income Tax Act 2025 replaced the 1959 Act from 1 January 2026; personal income tax rates and thresholds were unchanged.
Top PIT rate: 42.0%
Corporate tax rate: 30.0%
GST: 10.0%
Capital gains tax: 15.0% From 1 January 2026 the ITA 2025 introduces a capital gains tax on disposals of defined taxable assets (including certain mining and oil and gas interests). The headline rate is 15% on the gain; profits from property acquired for resale or profit-making schemes may still be taxed as ordinary income. Cost base uplift to fair market value at 1 January 2026 is available for qualifying assets.
Social security (employee): Rate not recorded
Social security (employer): Rate not recorded
Dividend withholding: 15.0%
Interest withholding: 15.0%
Royalty withholding: 10.0%
Treaty count: 10

Corporate

Corporate brackets
Bracket min	Bracket max	Rate	USD equivalent
PGK 0	and above	30.0%	$0 +

Personal income

Personal income brackets
Bracket min	Bracket max	Rate	USD equivalent
PGK 0	PGK 20,000	0.0%	$0 – $4,850
PGK 20,001	PGK 33,000	30.0%	$4,850 – $8,000
PGK 33,001	PGK 70,000	35.0%	$8,000 – $17,000
PGK 70,001	PGK 250,000	40.0%	$17,000 – $60,500
PGK 250,001	and above	42.0%	$60,500 +

Special regimes
Name	Type	Rate/amount	Duration	Status
Small Business Tax Simplified turnover-based tax for qualifying individual businesses, excluding em...	Flat rate	2.0%	Duration not recorded	Active

Days threshold: 183 days
Residency rules: A person is resident if they commence to reside in Papua New Guinea, if their domicile is in Papua New Guinea (unless their permanent place of abode is outside the country), or if they are present in Papua New Guinea for more than half of the year of income unless the Commissioner General is satisfied their usual place of abode is outside Papua New Guinea or they do not intend to take up residence. The calendar year is generally the tax year.
Exit tax: No
CFC rules: Yes Controlled foreign company rules attribute qualifying passive (property) income from low-tax foreign entities to Papua New Guinea residents with a 50% or greater direct or indirect interest, where the foreign entity meets low-tax jurisdiction tests.

IRC — Salary and wages tax (accessed Oct 9, 2026) Resident and non-resident salary withholding brackets from 1 January 2024 (site returned HTTP 403 on direct fetch; rates cross-checked to PwC and ITA 2025)
PwC Worldwide Tax Summaries — Papua New Guinea (accessed Oct 9, 2026) Headline PIT, CIT, GST, CGT, withholding, residency, filing, treaties, ITA 2025 changes
PwC PNG — Taxes on personal income (accessed Oct 9, 2026) Resident and non-resident PIT brackets, small business tax
PwC PNG — Withholding taxes (accessed Oct 9, 2026) Non-resident tax rates from 1 January 2026, treaty table
PwC PNG — Group taxation (accessed Oct 9, 2026) CFC attribution rules under ITA 2025

AL Albania Unique Permit for Digital Mobile Workers	$610/mo
EC Ecuador Digital Nomad Visa (Visa Nómada)	$1,446/mo
ME Montenegro Digital Nomad Residence Permit	$1,460/mo
MU Mauritius Premium Visa	$1,500/mo

GE Georgia Small Business Status (1% Tax)	1%
JE Jersey High Value Resident (HVR)	1%
UZ Uzbekistan IT Park Resident Status	1%
SO Somalia Presumptive Tax Regime (PTR)	1.5%