Papua New Guinea

Foreign tax relief

A foreign tax credit may be available to offset foreign tax paid against PNG tax payable. The foreign tax credit is limited to the lesser of the foreign tax paid or the average PNG tax payable on that foreign income. Foreign tax credits are to be calculated separately for foreign business income and foreign property income pools, and evidence of foreign tax payment must be provided within two years from the end of the tax year in which the foreign income arose.

Tax treaties

Double tax treaties (DTTs)

Papua New Guinea has DTTs with the following countries:

Tax information exchange agreements (TIEAs)

Papua New Guinea has entered into a TIEA with Australia.

Most of the DTTs also include an exchange of information clause; however, the effect of these clauses is limited to the taxes listed in the DTT.