Papua New Guinea - Other taxes and levies

Papua New Guinea - Other taxes and levies

Taxation of international executives

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Social security tax

Gift, wealth, estate, and/or inheritance tax

Real estate tax

Sales/VAT tax

Unemployment tax

Other taxes

All other taxes and levies information is summarized by KPMG, the Papua New Guinea member firm of KPMG International, based on the Papua Superannuation (General Provisions) Act 2000.

Social security tax

Are there social security/social insurance taxes in Papua New Guinea? If so, what are the rates for employers and employees?

No social security taxes in Papua New Guinea.

Employer and employee

Employers of 20 or more persons are required to register with an Approved Superannuation Fund. Membership of the fund is compulsory for citizens of Papua New Guinea and voluntary for expatriates.

For citizen employees, the employer is required to contribute 8.4 percent of the employee's gross taxable salary and the employee is required to contribute 6 percent. The maximum deductible amount that an employer may contribute for an employee is 15 percent of the employee's gross taxable salary.

Employer sponsored superannuation benefits accruing after 1 January 1993 are fully taxable on the termination of employment unless contributions have been made for the employee for more than five years, in which case a reduced rate of tax applies calculated according to the number of years contributions have been made and the age of the employee. 

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Papua New Guinea?

There are no estate, gift, or inheritance taxes in Papua New Guinea, although stamp duty does apply on the gifting of assets such as real property.

Real estate tax

Are there real estate taxes in Papua New Guinea?

Land tax is imposed at the provincial government level.

Sales/VAT tax

Are there sales and/or value-added taxes in Papua New Guinea?

Yes, at the standard rate of 10 percent subject to exemption or zero-rating of particular supplies.

Unemployment tax

Are there unemployment taxes in Papua New Guinea?

No.

Other taxes

Are there additional taxes in Papua New Guinea that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax,and so on. 

Local taxes

There are import duties and excise tax applicable to certain goods mainly with the intention of protecting local industries. Stamp duty applies to conveyances of real estate and other specified instruments.

© 2016 KPMG, a Papua New Guinea partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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