Papua New Guinea
Melanesia · PG · 9 treaties
Tax profile
| Corporate income tax | 45% |
| Withholding — dividends | 0% |
| Withholding — interest | 0% |
| Withholding — royalties | 0% |
| VAT / GST (standard) | 10% |
| Personal income (top rate) | 42% |
| Capital gains | n/a |
| Tax system | Worldwide |
| Residency threshold | 183 days |
| Exit / departure tax | No |
| CFC rules | No |
| Transfer pricing | Basic |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | None |
Tax residency
ModerateWhat makes you a tax resident — and how hard it is to stop being one.
- commences to reside in Papua New Guinea during a year of income
- domicile is in Papua New Guinea, unless permanent place of abode is outside Papua New Guinea
- presence in Papua New Guinea for more than one-half of the year of income (more than 6 months), unless the Commissioner General is satisfied the usual place of abode is outside Papua New Guinea or the person does not intend to take up residence
Domicile / deemed-domicile
Ending residency usually requires both leaving Papua New Guinea (so you are not present for more than half the year) and breaking PNG domicile or establishing a permanent and usual place of abode outside PNG to satisfy the Commissioner that you do not intend to reside there.
Source: Papua New Guinea Internal Revenue Commission (summarized in PwC Tax Summaries)
Tax treaty network (9)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Australia | 15% | 10% | 10% |
| Canada | 15% | 15% | 10% |
| China | 15% | 10% | 10% |
| Fiji | 15% | 10% | 10% |
| Indonesia | 15% | 10% | 10% |
| Malaysia | 15% | 15% | 10% |
| New Zealand | 15% | 10% | 10% |
| Singapore | 15% | 10% | 10% |
| United Kingdom | 15% | 10% | 10% |