Papua New Guinea

Corporate - Branch income

Last reviewed - 23 June 2020

Income derived by a non-resident contractor for services in Papua New Guinea is usually subject to a WHT at the rate of 15% of gross income. The provisions extend to payments for the following:

  • The installation, maintenance, and use in Papua New Guinea of substantial equipment or machinery.
  • Construction projects.
  • For the lease or charter of any industrial, commercial, or scientific equipment or any machinery or vehicle.
  • Consultancy or management services.

Where the non-resident contractor rules do not apply, the non-resident company will be subject to income tax at the non-resident tax rate of 48% on its PNG-sourced taxable income (see the Income determination section for a definition of taxable income).

PNG branch remittances are not liable for dividend WHT or any branch profits or similar tax.