Papua New Guinea
Contributions to employee superannuation funds
Papua New Guinea does not have a social security system. However, there are compulsory superannuation contributions for PNG citizen employees (superannuation contributions are not currently required for non-citizen employees but may be made on a voluntary basis). An employer of 15 or more persons must register with an authorised superannuation fund, unless operating in an exempt industry (currently certain agricultural sectors). Membership is compulsory for PNG citizens who work for more than 59 days in any three-month period and voluntary for non-citizens.
Contributions are remitted by the employer at the following rates, as a percentage of gross basic salary (excluding overtime, bonus, and commission):
- 6.0% employee contributions (i.e. after-tax contributions).
- 8.4% employer contributions (i.e. pre-tax contributions).
Distributions from authorised superannuation funds (other than the employee's own contributions) are taxed at the employee's marginal rate unless the distribution to the employee qualifies for concessional taxation. Concessional taxation is based on years of membership of the fund, as set out in the following table:
|Years of membership of a fund||Rate of tax|
|Less than 5||Marginal rate|
|5 to 9||The lesser of 15% or the marginal rate of tax|
|9 to 15||The lesser of 8% or the marginal rate of tax|
|More than 15||2%|
Goods and services tax (GST)
The GST rate is 10% and applies to most goods and services supplied in Papua New Guinea. See the Other taxes section in the Corporate tax summary for more information.
Net wealth/worth taxes
Papua New Guinea does not have a wealth tax system.
Inheritance, estate, and gift taxes
There are no inheritance, estate, or gift taxes in Papua New Guinea.
Stamp duty applies at varying rates on documents and certain transactions. See the Other taxes section in the Corporate tax summary for more information.
While some provinces have a 'head tax', Papua New Guinea does not have a local tax system.