Papua New Guinea Tax Rates
Papua New Guinea operates a progressive income tax system administered by the Internal Revenue Commission (IRC). The country is resource-rich, and its tax system reflects a strong reliance on revenue from the mining, oil, and gas sectors alongside personal and corporate income taxes. PNG levies a Goods and Services Tax (GST) at 10% and maintains specific tax incentives for the extractive industries and rural development. As a developing Pacific Island nation, PNG's tax framework balances the need for government revenue with economic development objectives.
Top Income Tax Rate
42%
Corporate Tax Rate
30%
VAT / Sales Tax
10%
Capital Gains Tax
0%
Detailed Tax Information
Income Tax Brackets
Papua New Guinea uses a progressive income tax system for resident individuals with rates ranging from 22% to 42%. Income up to PGK 12,500 is taxed at 22%, income from PGK 12,501 to PGK 20,000 at 30%, income from PGK 20,001 to PGK 33,000 at 35%, income from PGK 33,001 to PGK 70,000 at 40%, and income exceeding PGK 70,000 at 42%. Non-resident individuals are taxed at a flat rate of 22% on the first PGK 12,500 and higher marginal rates on additional income. PNG does not have a tax-free threshold. Salary and wages tax is withheld by employers through the PAYE system.
| Income Range | Tax Rate |
|---|---|
| K 0 – K 13K | 22% |
| K 13K – K 20K | 30% |
| K 20K – K 33K | 35% |
| K 33K – K 70K | 40% |
| K 70K – K 250K | 42% |
| K 250K+ | 42% |
Corporate Tax
The standard corporate tax rate in Papua New Guinea is 30% for resident companies. Non-resident companies are taxed at 48% on PNG-sourced income. Companies engaged in mining and petroleum operations may be subject to additional profits tax regimes specific to those industries. A 2% additional profits tax applies to mining companies on income exceeding a specified threshold. PNG offers various tax incentives including a reduced rate for approved new industries, accelerated depreciation for certain assets, and tax holidays for investments in priority sectors such as agriculture, tourism, and manufacturing in designated regions.
Standard Rate
30%
Capital Gains Tax
Papua New Guinea does not impose a separate capital gains tax. However, gains from the disposal of assets may be treated as ordinary income if they arise from a business or trading activity. The sale of real property by a non-resident may be subject to withholding tax. Mining and petroleum companies may face special rules on the disposal of project assets. In general, gains from the sale of shares or investments that are not part of a trading business are not subject to income tax.
Rate
0%
VAT / Sales Tax
Papua New Guinea's Goods and Services Tax (GST) is levied at a flat rate of 10% on most goods and services supplied within PNG. Exports are zero-rated. Certain supplies are exempt, including financial services, residential accommodation, medical and educational services, and supplies of unprocessed food by small-scale producers. The GST was introduced in 2004 and is administered by the Internal Revenue Commission.
Standard Rate
10%
Cryptocurrency Tax
Papua New Guinea does not have specific legislation or regulatory guidance addressing the taxation of cryptocurrency. The Bank of Papua New Guinea has issued warnings about the risks of virtual currencies. In principle, any income derived from cryptocurrency trading or mining activities could fall under general income tax provisions if conducted as a business. However, there is no established enforcement framework or specific reporting requirements for crypto transactions.
Tax Treaties
Papua New Guinea has a limited network of approximately 8 double taxation agreements in force. Its most significant treaty relationship is with Australia, its largest trading partner and aid donor. PNG's treaty network is focused on key investment and trade partners in the Asia-Pacific region. The country is gradually expanding its treaty network to support foreign investment, particularly in the extractive industries.
Treaty Network
8
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Papua New Guinea
See how much you could save by moving here from your current country.
$-18,587
Tax in United States
$24K
24.4% effective
Tax in Papua New Guinea
$43K
42.9% effective
Additional Cost
76.3%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
