Papua New Guinea
Tax credits are also known as rebates in Papua New Guinea.
The allowable dependant rebates for salary or wage earners are built into the tax rate schedule. Non-salary or wage earners who are resident in Papua New Guinea receive the following rebates for dependants:
- First dependant: 15% of gross tax with a maximum of PGK 450 and a minimum of PGK 45.
- Second and third dependants: 10% of gross tax with a maximum of PGK 300 and a minimum of PGK 30.
The maximum rebate available to an individual is PGK 1,050 per annum (i.e. no rebates are available for more than three dependants).
A dependant is a person whose separate net income does not exceed PGK 1,040 in the year and who is either:
- a spouse of the taxpayer
- an unmarried child of the taxpayer of less than 16 years of age
- a student receiving full-time education who is over 16, but less than 25, years of age, or
- a PNG resident parent of the taxpayer or the taxpayer's spouse.
Although legislation was introduced in the National Budget 2024 to repeal the rebate, in response to public unrest in January 2024, the government have announced that the rebate will continue. The IRC have confirmed that the law for employers will be administered on the basis that the rebate continued to be available from 1 January 2024.