Papua New Guinea
Melanesia · PG · 9 treaties
What are the main tax rates in Papua New Guinea?
Papua New Guinea's top personal income tax rate is 42%, the corporate tax rate is 45%, and the standard VAT is 10%.
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 |
Common questions
- How long does it take to become a tax resident in Papua New Guinea?
- It takes 183 days to establish tax residency in Papua New Guinea.
- Are there withholding taxes on dividends in Papua New Guinea?
- There are no dividend withholding taxes in Papua New Guinea; the rate is 0%.
- Is cryptocurrency taxed in Papua New Guinea?
- Cryptocurrency is taxed as income in Papua New Guinea, with no exemption for long-term holdings.
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
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 (11)
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% | 10% | 10% |
| China | 15% | 10% | 10% |
| Fiji | 15% | 10% | 15% |
| Indonesia | 15% | 10% | 10% |
| Malaysia | 15% | 15% | 10% |
| New Zealand | 15% | 10% | 10% |
| Singapore | 15% | 10% | 10% |
| United Kingdom | 15% | 10% | 10% |
| Germany | 15% | 10% | 10% |
| South Korea | 15% | 10% | 10% |