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Jurisdiction overview

Tax in Papua New Guinea

Last reviewed: · by TaxProsRated editorial

Key points

Papua New Guinea's Internal Revenue Commission administers personal income tax at progressive 0-42 percent across multiple bands, corporate income tax at 30 percent (50 percent for petroleum), and GST at 10 percent.

PIT top rate
42%
Above PGK 250,000
CIT standard
30%
50% petroleum sector
GST
10%
PGK 250,000 threshold
Tax authority
IRC
Internal Revenue Commission
IRC e-File PNG PG RESOURCES
Papua New Guinea at a glance

A resource-rich Pacific nation with a worldwide-income personal tax and a split-rate corporate framework for the extractive sector.

Papua New Guinea's Internal Revenue Commission (IRC) administers income tax under the Income Tax Act 1959, GST under the Goods and Services Tax Act, and a suite of withholding taxes that carry particular weight for LNG, mining, and petroleum operators. The currency is the Papua New Guinea Kina (PGK), managed by the Bank of Papua New Guinea.

Who is the tax authority?

The Internal Revenue Commission (IRC) is PNG's tax authority. It sits under the Department of Treasury and operates under the IRC Act.

The legal foundation rests on two principal statutes: the Income Tax Act 1959 (as amended) governs personal and corporate income tax; the Goods and Services Tax Act governs indirect tax. The IRC also administers withholding taxes, the Additional Profits Tax for petroleum, and stamp duties.

The IRC's Large Taxpayer Office in Port Moresby handles resource-sector companies, banks, and telecommunications providers. Disputes proceed through IRC objection, the Internal Review Committee, and ultimately the National Court.

Tax year and filing deadlines

Papua New Guinea uses the calendar year (1 January to 31 December). Individual and corporate annual returns are both due 28 February of the following year. GST returns are due monthly.

Papua New Guinea tax year key filing dates PNG tax year January through December JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC GST Monthly by 21st ! Returns 28 Feb ind + corp PAYE withheld fortnightly from wages · GST monthly by the 21st of the following month Individual return · Corporate return · Both due 28 February of the following year February is PNG's heaviest filing month — individual and corporate returns land on the same date.

Employers must run fortnightly PAYE withholding. Resource-sector companies lodge additional monthly returns for withholding tax on dividends, interest, and management fees paid to non-residents.

Who counts as a PNG tax resident?

A person is a PNG tax resident if physically present in Papua New Guinea for 183 days or more in the tax year. Ordinary residents whose permanent home and centre of life is in PNG also qualify.

Residents pay tax on worldwide income. Non-residents pay tax only on PNG-source income. The two tests apply independently — meeting either one creates residency for that year.

Expats working on resource projects under fly-in fly-out rosters must count days carefully. The IRC looks at consecutive and aggregate days in PNG when assessing residency status.

What are the personal income tax rates?

PNG uses six progressive PIT brackets denominated in Papua New Guinea Kina (PGK). The top rate of 42 percent applies above PGK 250,000.

Yearly income (PGK)Tax rate
0 to 12,5000%
12,501 to 20,00022%
20,001 to 33,00030%
33,001 to 70,00035%
70,001 to 250,00040%
Above 250,00042%
Papua New Guinea personal income tax brackets PNG personal income tax — six brackets 42% 30% 22% 0% 0% 0-12.5K 22% 12.5-20K 30% 20-33K 35% 33-70K 40% 70-250K 42% 250K+ Income thresholds in Papua New Guinea Kina (PGK). Source: IRC / Income Tax Act 1959. PAYE withheld fortnightly from employment income. Self-employed lodge annual return.
Source: Internal Revenue Commission (PNG). Brackets denominated in PGK.

Employees also contribute to Nambawan Super, PNG's mandatory superannuation scheme. Employer contribution is 8.4 percent; employee contribution is 6 percent on gross salary.

How does corporate tax work?

PNG splits its CIT framework by industry sector. The standard rate is 30 percent; the petroleum and resources rate is 50 percent.

Standard CIT
30%

Applies to most businesses: retail, professional services, banking, manufacturing, construction, and agriculture. Small companies with annual turnover below PGK 250,000 qualify for a reduced 25 percent rate.

Petroleum and resources
50%

Applies to petroleum operations, LNG projects, and qualifying mining companies. The Additional Profits Tax (APT) layers on top for petroleum operations that exceed a project-level return threshold.

Withholding tax on dividends paid to non-resident shareholders is 17 percent. Treaty residents may access reduced rates where a DTA provides one. Royalties paid to non-residents attract a 10 percent withholding tax. Management fees paid to non-residents attract 17 percent withholding.

PNG has not yet transposed the OECD Pillar Two global minimum tax into domestic law. Transfer pricing rules apply under the Income Tax Act for transactions between related parties; OECD arm's-length principles are referenced.

GST and indirect taxes

Goods and Services Tax (GST) is PNG's consumption tax. The standard rate is 10 percent under the Goods and Services Tax Act.

Rate Applies to
10%Standard rate on most taxable goods and services
0%Exports (zero-rated, input credits still claimable)
ExemptFinancial services, residential accommodation, basic food and healthcare

GST registration is mandatory once annual turnover reaches PGK 250,000. Registered businesses lodge monthly GST returns by the 21st of the following month. Customs duty applies to most imports; rates vary by HS code.

How are cryptoassets taxed?

No dedicated framework

PNG has no specific cryptoasset or digital-asset tax legislation.

The Bank of Papua New Guinea has issued caution-level advisories about cryptoassets, but no dedicated tax or licensing framework exists. Where cryptoasset gains are declared, the IRC treats them under existing income tax categories. Businesses with regular crypto trading activity should take guidance from a qualified PNG tax-adviser on income characterisation.

What is the treaty network?

PNG has a limited but growing DTA network. Australia is the cornerstone partner, reflecting deep bilateral economic ties through the LNG and mining sectors.

Papua New Guinea bilateral tax treaty network PNG active bilateral tax treaties Australia (highlighted) is the cornerstone DTA partner Australia key UK Pacific Singapore ASEAN Malaysia ASEAN Indonesia region Fiji Pacific China Asia Korea Asia PNG DTAs
Australia treaty highlighted in red as PNG's primary DTA partner. PNG is a Pacific Islands Forum member state.

PNG is a member of the Pacific Islands Forum and APEC but has not signed the OECD Multilateral Instrument (MLI). Non-treaty countries face full withholding rates — 17 percent on dividends and management fees, 10 percent on royalties — with no DTA reduction available.

Currency framework

PGK — Papua New Guinea Kina

The Papua New Guinea Kina (PGK) is a managed-float currency overseen by the Bank of Papua New Guinea. As of mid-2026, the approximate exchange rate is 1 USD to 3.8 PGK, though the rate fluctuates with commodity prices and monetary policy. All IRC tax thresholds, brackets, and GST registration limits are denominated in PGK.

Foreign currency conversion is required for taxpayers with USD-denominated resource contracts. The IRC requires that income and expenses be translated at the average exchange rate for the relevant tax year. Resource companies with functional currency in USD must maintain PGK-denominated records for IRC compliance purposes.

Pacific Islands cohort

PNG anchors the Melanesian resource-economy archetype in the Pacific tax cohort. Its dual-rate CIT structure sets it apart from smaller Pacific peers.

Pacific Islands tax cohort positioning Pacific Islands tax cohort PNG anchors Melanesia resource archetype alongside Pacific Islands peers TYPE A Resource + PIT PNG YOU ARE HERE 30%/50% CIT 42% PIT top 10% GST TYPE B VAT + PIT Fiji 9% VAT 20% PIT top 20% CIT TYPE C No PIT Vanuatu 0% PIT 0% CIT 12.5% VAT TYPE D Consumption only Tonga 15% consumption 25% CIT No broad PIT TYPE E PIT + resource Samoa PIT to 27% 27% CIT 15% VAGST
PNG anchors Type A — the only Melanesian peer with a dual-rate CIT separating standard and petroleum sectors.

Common pitfalls

Foreign companies and expatriates operating in PNG encounter these recurring traps:

1 — Resource-sector withholding at 17%

Dividends and management fees paid from PNG to non-resident related parties attract 17 percent withholding. Without a DTA to reduce the rate, the cost is significant for project financing structures that route dividends offshore.

2 — Fortnightly PAYE complexity

PNG payroll runs on a fortnightly cycle, not monthly or weekly as in many peer jurisdictions. Employers operating across multiple projects and provinces must reconcile IRC withholding tables with site-specific allowances and fringe benefits.

3 — Thin capitalisation for resource companies

PNG's thin-cap rules limit interest deductions on related-party debt. Resource companies with high leverage ratios face disallowance of interest deductions if the debt-to-equity ratio exceeds IRC thresholds, directly affecting the 50 percent petroleum CIT calculation.

4 — Dividend WHT 17% without treaty relief

Non-resident shareholders in PNG companies face 17 percent withholding on dividends. Treaty partners such as Australia and Singapore access reduced rates. Shareholders from non-treaty countries have no relief mechanism beyond the domestic rate.

5 — Royalty WHT 10%

Royalties paid to non-residents attract 10 percent withholding under the Income Tax Act. Intellectual property licence structures and technology transfer agreements between PNG entities and foreign parents must factor this into pricing.

6 — Transfer pricing for resource companies

The IRC applies OECD arm's-length principles to related-party transactions. Resource companies with complex group structures must maintain contemporaneous documentation. Non-compliance attracts penalty loadings on top of the already elevated 50 percent petroleum CIT.

When to talk to a PNG tax professional

When to engage a PNG tax professional decision flow Is the income above PGK 70,000? Start: employment, business, or resource income? Above 40% bracket — complex withholding applies YES NO Professional guidance strongly recommended IRC standard forms may be sufficient Engage a PNG tax professional when any of these apply - Resource sector operations (50% CIT / APT applies) - Non-resident withholding tax obligations or DTA relief claims - Transfer pricing documentation or IRC audit response

Situations where a qualified PNG tax professional is particularly useful:

Resource project structuring

LNG, mining, and petroleum projects face the 50 percent CIT, Additional Profits Tax, and ring-fencing rules. Getting the project entity structure right from the outset avoids structural tax costs that cannot be unwound later.

Expat PAYE and residency

Fly-in fly-out rosters, multiple project sites, and allowances make PNG payroll complex. A professional ensures the fortnightly PAYE tables are applied correctly and that fringe benefits are declared.

Transfer pricing documentation

Related-party service fees, management charges, and inter-company loans all need contemporaneous arm's-length documentation. The IRC targets these in resource-sector audits.

IRC audit response

IRC audit and objection processes require local representation. The IRC objection deadline is typically 60 days from assessment. Missing it closes the right to dispute.

You can find vetted PNG practitioners through the directory below.

This page is general information about Papua New Guinea's tax framework. It is not personal guidance for your specific situation. Tax rules change. Always verify current figures on the IRC website or with a licensed PNG practitioner before filing.

Frequently asked

Who is the Papua New Guinea tax authority?

The Internal Revenue Commission (IRC) administers Papua New Guinea's tax system under the IRC Act and the Department of Treasury. The IRC operates a Large Taxpayer Office for resource-sector companies. Disputes proceed through IRC objection, Internal Review Committee, and the National Court.

What are the PNG personal income tax rates?

Progressive six-bracket PIT in PGK: 0 percent up to 12,500; 22 percent 12,501 to 20,000; 30 percent 20,001 to 33,000; 35 percent 33,001 to 70,000; 40 percent 70,001 to 250,000; 42 percent above 250,000. PAYE withheld fortnightly. Nambawan Super: 8.4 percent employer, 6 percent employee.

What is the PNG corporate tax rate?

Standard CIT is 30 percent. Petroleum and resources operations pay 50 percent. Small companies with turnover below PGK 250,000 pay 25 percent. Additional Profits Tax applies to petroleum projects exceeding a return threshold. Pillar Two not yet transposed.

What is the PNG GST rate?

GST is 10 percent under the Goods and Services Tax Act. Exports are zero-rated. Financial services, residential accommodation, and basic food and healthcare are exempt. Registration mandatory above PGK 250,000 annual turnover. Monthly returns due by the 21st of the following month.

When are PNG tax returns due?

Individual and corporate annual returns are both due 28 February of the following year. GST returns are monthly. PAYE is withheld fortnightly from employment income. Resource-sector companies lodge additional monthly returns for non-resident withholding taxes on dividends, interest, and management fees.

Who is a PNG tax resident?

A person is a PNG tax resident if physically present 183 days or more in the tax year, or if ordinarily resident with permanent home in PNG. Residents are taxed on worldwide income. Non-residents pay tax only on PNG-source income. The IRC examines consecutive and aggregate days for expats on fly-in fly-out rosters.

How are cryptoassets taxed in PNG?

Papua New Guinea has no dedicated cryptoasset tax legislation. The Bank of Papua New Guinea has issued advisory cautions about cryptoassets. Where cryptoasset gains are declared, the IRC treats them under existing income tax categories. No specific licensing or reporting framework exists as of 2026.

Major tax firms in Papua New Guinea

Verified directory of the largest accounting + tax practices operating in Papua New Guinea. Listings are entity-level reference cards — claim flow is open to firm representatives.

Find a tax pro in Papua New Guinea

Browse credentialed pros serving Papua New Guinea — filter by specialty, language, and credential type.

Browse the Papua New Guinea directory

Sources

The figures, dates, and rules on this page are sourced from the documents listed below. Where two sources disagree, both are listed.

  1. [1]IRC — Internal Revenue Commission of PNG (opens in new tab)
    Internal Revenue Commission (PNG) · accessed
  2. [2]Income Tax Act 1959 (PNG) (opens in new tab)
    Government of Papua New Guinea · accessed
  3. [3]Goods and Services Tax Act (PNG) (opens in new tab)
    Government of Papua New Guinea · accessed
Important disclaimer

Informational only — not tax advice. This page summarises publicly available information about tax in Papua New Guinea as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.

TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.