Papua New Guinea's headline corporate income tax (CIT) rate is 30.
The headline personal income tax (PIT) rate is 42.
The standard VAT/GST (or equivalent consumption tax) rate is 10 (GST). Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
An individual becomes a PNG tax resident for the year in which they commence residing in PNG - this includes anyone domiciled in PNG (unless their permanent place of abode is outside PNG), and anyone present in PNG for more than one-half of the income year, unless the Commissioner General is satisfied the person's usual place of abode is outside PNG or they do not intend to take up PNG residence. A company incorporated in PNG is automatically a PNG tax resident. A foreign-incorporated company is also PNG-resident if it is managed and controlled in PNG (key decisions made at directors' meetings held in PNG), or if it trades in PNG and its voting power is controlled by PNG-resident shareholders. Resident companies are taxed on worldwide income; non-residents only on PNG-source income, generally via withholding or a permanent-establishment net-basis charge.
Applies to both individual and corporate PNG residents. Under the Income Tax Act 2025 (effective for the current tax year), PNG's CFC regime attributes a proportional share of "property income" (passive income - dividends, interest, royalties, rent, pensions, annuities, and similar) from a qualifying low-tax foreign entity directly to a PNG resident holding 50% or more direct or indirect interest, taxable in PNG as it arises. The low-tax trigger is an effective foreign tax rate below 15%, a territorial/remittance-based foreign system, or a jurisdiction with financial secrecy features that conceal beneficial ownership. Note: older secondary sources (including some 2016-2018 KPMG country profiles) state PNG has no CFC regime - that was accurate under prior law but is now outdated; the current PwC Worldwide Tax Summaries page (last reviewed 27 March 2026) confirms the regime is now in force under ITA 2025.
2:1 debt-to-equity ratio applies to foreign-controlled PNG companies (including PNG permanent establishments of non-residents), calculated monthly as average debt to average equity across the tax year. Where the ratio is exceeded, deductible interest is disallowed proportionally using the formula: disallowed interest = total deductible interest x (excess debt / average debt). Licensed financial institutions are exempt, as are cases where the lender is resident in a non-discrimination-clause treaty country and average debt does not exceed arm's-length debt. Resource (mining/petroleum) companies are subject to a separate, more generous 3:1 ratio.
No domestic FBAR/Form 8938-equivalent requiring PNG residents to self-report their own foreign accounts to the PNG Internal Revenue Commission was identified in available sources. On the institutional side, PNG's FATCA intergovernmental agreement status was identified as still developing as of available sources (reporting expected to phase in around 2027) - confirm current FATCA/CRS institutional participation directly with a PNG financial institution or the IRC before relying on this point. Separately and independently of PNG's own law, US citizens and Green Card holders with PNG accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938, regardless of what PNG's domestic law requires.
Resolved in favor of the most specific and current source: PwC's current withholding-taxes page for PNG names 11 treaty partners - Australia, Canada, China, Fiji, Germany, Indonesia, Korea, Malaysia, New Zealand, Singapore, and the United Kingdom (plus MLI participation). Lower counts from a KPMG-sourced guide (9) and a secondary aggregator (8) likely reflect older data or a narrower definition of what counts as in-force; PwC's named, current list is preferred here as the most specific and verifiable figure. PNG has also concluded a standalone TIEA with Australia in addition to its full DTA.