Papua New Guinea Corporate Income Tax

Corporate tax rates

Resident companies are taxed at a flat 30% on trading profits. Non-resident companies operating through a branch face the same 30% plus a branch remittance tax. Commercial banks and certain resource projects have special rates.

• Resident company tax rate — 30% % (Income Tax Act)
• Non-resident company (branch) rate — 30% on attributable profits, plus a 15% branch remittance tax on repatriated profits (combined effective rate approximately 40.5%) % (Income Tax Act)
• Commercial bank rate — 35% on taxable income below PGK 300 million; above that, an additional levy applies that reduces progressively from 43% toward 35% year-by-year through to 2034 % (Income Tax Act)
• Overseas shippers (non-resident transport) — 2.4% of gross income derived from PNG % (Income Tax Act)
• Mining / petroleum / gas project rate — Resource projects are taxed under special regimes; mining is generally 30% and petroleum/gas project rates vary by project agreement % ((approx — confirm rate per the specific resource project agreement and current rate schedule)) (Income Tax Act)

Tax base, withholding taxes and administration

The tax base is worldwide income for resident companies, less allowable deductions. PNG levies withholding taxes on dividends, interest and royalties paid to non-residents. Companies file annually following the calendar year.

• Corporate tax base — Resident companies are taxed on worldwide income less allowable deductions; non-resident companies on PNG-source income (Income Tax Act)
• Withholding / non-resident tax on dividends — 15% (standard); 30% on dividends paid by a non-profit or former non-profit body out of exempt income % (Streamlined non-resident tax (NRT) regime effective 1 January 2026; treaty relief may reduce the rate) (Income Tax (Dividend Withholding Tax) provisions)
• Withholding / non-resident tax on interest — 15% % (Treaty relief (often 10%) may apply) (Income Tax (Interest Withholding Tax) provisions)
• Withholding / non-resident tax on royalties — 10% (non-associate recipient); 30% (associate recipient) % (Treaty relief (often 10%) may apply) (Income Tax Act)
• Treaty dividend cap — PNG's tax treaties generally cap dividend withholding at 15% (PNG Double Taxation Agreements)
• Corporate tax year — Calendar year (1 January to 31 December); substituted accounting periods require IRC approval (Income Tax Act)
• Corporate return deadline — 28 February following the year of income (extended to 30 June where lodged by a registered tax agent) ((approx — confirm against current IRC lodgment program)) (Income Tax Act)
• Corporate tax payment — Companies pay provisional tax in instalments; balance of assessed tax due within 30 days of service of the assessment notice (Income Tax Act)