Papua New Guinea Personal Income Tax

Resident individual income tax rates (salary and wages tax)

Resident individuals are taxed on worldwide income at progressive marginal rates. PNG has no general tax-free threshold; the lowest band already attracts 22%. Salary and wages are taxed at source under the fortnightly salary or wages tax (SWT) system.

• Resident rate — up to PGK 12,500 — 22% % ((approx — confirm band exact figure against current SWT tables)) (Income Tax Act)
• Resident rate — PGK 12,501 to 20,000 — 30% % ((approx — confirm)) (Income Tax Act)
• Resident rate — PGK 20,001 to 33,000 — 35% % ((approx — confirm)) (Income Tax Act)
• Resident rate — PGK 33,001 to 70,000 — 40% % ((approx — confirm)) (Income Tax Act)
• Resident rate — above PGK 70,000 — 42% % ((approx — top marginal rate applies from this band; confirm threshold)) (Income Tax Act)
• Tax-free threshold — None — there is no nil-rate band; tax applies from the first kina of taxable income (Income Tax Act)
• Dependant rebate / tax credit — Salary or wages tax declarations allow a dependant rebate that reduces fortnightly SWT for employees with declared dependants ((approx — confirm current rebate amounts and number of dependants allowed)) (Income Tax Act)

Non-resident rates, residence test and administration

Non-residents are taxed only on PNG-source income, with no benefit of the lowest resident band entry treatment. Residence is determined primarily by a physical-presence test. Returns and payment follow IRC deadlines.

• Non-resident rate — income up to PGK 20,000 — 22% % ((approx — non-residents have no graduated entry relief; confirm)) (Income Tax Act)
• Non-resident top rate — above PGK 250,000 — 42% % ((approx — confirm)) (Income Tax Act)
• Individual residence test — An individual is generally resident if domiciled in PNG, or present in PNG for more than 183 days in the year of income (subject to the usual ordinary-residence tests) ((approx — confirm exact day-count and domicile wording)) (Income Tax Act)
• Return deadline (no tax agent) — 28 February following the year of income (Income Tax Act)
• Return deadline (registered tax agent) — 30 June following the year of income (Income Tax Act)
• Employee filing exemption — Employees whose only income is employment income fully taxed at source under SWT are generally not required to lodge a return (Income Tax Act)
• Payment of assessed tax — Due within 30 days of the date of service of the notice of assessment (Income Tax Act)
• Provisional tax — Applies to non-salary income; generally based on prior-year assessment and payable no earlier than 30 September of the income year (Income Tax Act)