Papua New Guinea

Corporate - Taxes on corporate income

Last reviewed - 16 June 2025

PNG resident companies are liable for income tax on their worldwide income. Companies that are not resident in Papua New Guinea are only required to pay tax on income sourced in Papua New Guinea. A non-resident’s PNG-sourced passive income, including dividends, interest, and royalties, may be subject to WHT. It is ordinarily the case that the payer of the dividend, interest, or royalty must withhold the relevant amount of the tax and remit this to PNG’s Internal Revenue Commission (IRC).

Papua New Guinea levies corporate income tax (CIT) on companies (other than commercial banks) on a flat rate basis.

Generally, trading profits and other income (except income that is specifically exempt) of resident companies and the permanent establishments of non-resident companies in Papua New Guinea are assessed tax at a rate of 30%. Further, non-resident permanent establishments must pay a remittance tax of 15%.

For commercial banks, the rate will depend on the level of taxable income. Below PGK300 million, the rate of CIT is 35%, for taxable income in excess of that level, rates will progressively reduce from 43% to 35% year by year through to 2034.

International Transportation income tax

Income derived by overseas shippers or charterers carrying passengers, livestock, mail, or goods out of Papua New Guinea is taxable in Papua New Guinea. The tax is calculated as 2.4% of gross income. The IRC may exempt the overseas shipper from tax if the shipper’s home country exempts PNG shippers from a similar tax.