With its rich biodiversity, vibrant traditional cultures, and emerging opportunities in sectors like mining, education, and development, PNG is a destination unlike any other.
In this guide, we’ll walk you through everything you need to know about relocating to the PNG from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
PNG follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if you spend more than 182 days in PNG during the tax year period unless you normally reside overseas and have no intention to reside long term in PNG.
if you have a PNG domicile unless your permanent abode is overseas.
Providing that you operate an SME business and your turnover is less PGK 250,000, your profits will be subject to a flat tax rate of 2%. PNG can be a very tax efficient place to live for entreprenuers and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Profits up to 250,000 PGK.
2% flat tax rate.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in PNG, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, PNG has ten double taxation agreements signed.
