Nomad Watch
PG

Small Business Tax

Active Flat rate

Papua New Guinea · special tax regime

Flat rate 2.0%
Duration —
Prior non-residency — required before applying
Standard top income tax 42.0% Papua New Guinea, without the regime

Overview

Regime
Small Business Tax
Type
Flat rate
Status
Active
Effective from
Jan 1, 2024
Expires on
—

Details

Summary
Simplified turnover-based tax for qualifying individual businesses, excluding employment and professional services income.
Eligibility
Individual small businesses that elect in or remain within turnover thresholds; excludes employment income and income from professional services.
Benefits
Flat fees or 2% of turnover instead of graduated PIT and full GST compliance for the smallest businesses.
Requirements
PGK 250 annual fee if turnover under PGK 60,000; PGK 62.50 per quarter plus 2% of quarterly turnover above PGK 15,000 when annual turnover exceeds PGK 60,000; 2% of turnover if below the GST registration threshold (PGK 250,000).
Limitations
Election out or exceeding thresholds moves the taxpayer to ordinary individual marginal rates; GST registration rules still apply at higher turnover.
Income types covered
Business turnover (not salary or professional services)
Duration details
While eligible and not elected out

View source PwC PNG individual taxes on personal income 2026

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