PNG — PAYE, Superannuation, GST, Company Tax, IRC 2026
💰 PAYE - Salary & Wages Tax
PNG uses a 6-bracket progressive system (22%-42%). Tax-free threshold: K10,000/year. Plus 6% superannuation deduction. PNG taxes worldwide income for residents. Non-residents: max 42%. FY 2026 (Jan 1 – Dec 31).
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📌 PAYE 2026:6 Brackets (Resident): 0% (≤K10,000) → 22% → 30% → 35% → 38% → 42% (≥K250,001). Tax-free threshold: K10,000/year. Non-residents: No threshold; rates from 30% up to 42%. Worldwide income: Residents taxed on all income regardless of source. New 2025 Income Tax Act: Effective Jan 1, 2026 — introduces 15% capital gains tax on natural resource disposals; banking tax rates 35-43%; streamlined loss carry-forward rules. IRC (Internal Revenue Commission): Administers all taxes. Tax year: January to December.
📊 PNG Tax Rates Overview 2026
Tax Type
Rate
Details
Income Tax (Nil)
0%
K0 – K10,000 (tax-free)
Income Tax (Low)
22%
K10,001 – K18,000
Income Tax (Mid)
30%
K18,001 – K33,000
Income Tax (Upper)
35%
K33,001 – K70,000
Income Tax (High)
38%
K70,001 – K250,000
Income Tax (Top)
42%
Above K250,000
Super Employee
6%
Superannuation contribution
Super Employer
8.4%
Compulsory contribution
GST
10%
Goods & Services Tax
Company Tax (Resident)
30%
Standard rate
Company Tax (Non-resident)
48%
Foreign companies
Mining Company Tax
30%
Mining operations
Oil & Gas Company Tax
45-50%
Petroleum operations
Capital Gains (New 2026)
15%
Natural resource disposals
WHT (Dividends)
17%
To non-residents
WHT (Interest/Royalties)
15%
To non-residents
📌 Tax System Overview:
PNG has a resource-rich economy heavily dependent on mining, oil & gas (PNG LNG project). The tax system is administered by the IRC (Internal Revenue Commission). Key features: New 2025 Income Tax Act effective Jan 1, 2026 — replaces the 1959 Act; introduces 15% CGT on natural resource disposals; banking sector differential rates (35-43%); streamlined group loss transfer. High non-resident rates: 48% corporate tax for foreign companies — one of the highest in the Pacific. GST zero-rating: From July 2025, 13 essential goods zero-rated. Stamp duty applies to property transactions. Export taxes on logs, marine products, crocodile skins.
PNG superannuation: Employee 6%. Employer 8.4%. Combined: 14.4%. Major funds: NASFund and Nambawan Super. No ceiling. Withdrawable at age 55 or for housing.
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📌 Superannuation 2026:Employee (6%): Mandatory deduction from gross salary. No ceiling. Employer (8.4%): Compulsory employer contribution. Must be remitted monthly to approved super fund. Self-employed: Voluntary minimum K20/month. Major funds: NASFund (National Superannuation Fund) and Nambawan Super are the two largest. Withdrawal age: 55 years (retirement). Early withdrawal: Allowed for housing deposit, medical emergencies, or permanent departure from PNG. Investment returns: Historically 5-8% p.a. depending on fund. Portability: Balance transfers between funds when changing employers. Foreign workers: May apply for withdrawal upon permanent departure (subject to conditions). Death benefit: Balance paid to nominated beneficiaries.
🧾 GST Calculator (Goods & Services Tax)
PNG GST standard rate: 10%. Registration threshold: K100,000/year. From July 2025: 13 essential goods zero-rated. Input tax credits available.
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📌 GST 2026:10% (Standard): Most goods & services. Zero-rated (from Jul 2025): 13 essential goods including basic food items, medicines. Registration threshold: K100,000/year turnover (mandatory). Input tax credits: Registered businesses can claim GST on purchases. Filing: Monthly returns. Export taxes: Logs, marine products, crocodile skins subject to separate export duties. Import duties: Vary by product (0-40%). IRC modernization: Moving toward real-time GST monitoring. Exempt: Financial services, residential rent.
Withholding tax: 15-17%. Stamp duty on property. Export taxes on logs/marine products. Management fee WHT: 15%.
PGK
📌 Corporate & Other Tax Notes:Resident company (30%): Taxed on worldwide income. Non-resident (48%): Taxed only on PNG-source income — one of highest rates in the Pacific. Mining (30%): Same as general rate. Oil & Gas (45-50%): Petroleum operations face highest rates. Banking (2026): New differential rates 35-43% based on income level (phasing down to 35%). New 2025 Act: 15% CGT on natural resource disposals; group loss transfer allowed; streamlined depreciation for intangibles. WHT: Dividends 17% (oil/gas exempt due to higher rate); Interest/Royalties 15%; Management fees 15%. Stamp duty: On property transfers, varies by value. Export taxes: Logs, marine products, crocodile skins. IRC: Internal Revenue Commission. DTA: Limited treaty network — Australia, Singapore.