Papua New Guinea: Budget for 2017, tax proposals | KPMG | GLOBAL

Papua New Guinea: Budget for 2017, tax proposals

Papua New Guinea: Budget for 2017, tax proposals

The Papua New Guinea (PNG) Minister for Treasury on 1 November 2016 handed down the budget for 2017.

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Among the tax measures are items concerning the following sectors:

  • Resource companies—The measures proposed for resource entities include extending the additional profits tax to all resource projects and increasing the rate of tax; aligning the corporate and dividend withholding tax rates with non-resource companies; and repealing the interest withholding tax exemption for non-resident lenders. 
  • Foreign contractors—The foreign contractor withholding tax (FCWT) would be increased to 15%.  
  • Employee taxes—There would be an increase in taxable value of housing benefits.  
  • Consultations—There are further consultation to confirm: (1) the intent of the effective tax rate increase to 59.4% in respect of dividends paid to resident individuals; and (2) the projects that would be included in the extended additional profits tax for resource entities. 
  • Base erosion and profit shifting (BEPS) country-by-country reporting

 

Read a November 2016 report [PDF 413 KB] prepared by the KPMG member firm in Papua New Guinea

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