Papua New Guinea

Income Tax Act (ITA) 2025

ITA 2025 took effect on 1 January 2026.  

Although the intent was broadly a simplification of the current Act and an update in language used, the new Act will represent a significant change in policy and will impact all taxpayers operating in the country.

The most significant changes for individual taxation include:

• Taxation of employment benefits: The taxable value of certain benefits (in particular motor vehicles) has been changed and increased. There are also some additional benefits included.
• More controls on the ability of employers and employees to enter into salary packaging arrangements with limits placed on the relative value of non-cash benefits. The 60/40 rule has been in tax authority policy but is now part of the new Act.

Although the Act has been passed, there is still a requirement for subsidiary regulations to be drafted and released.

If the matters above are relevant to your circumstances, then these potential changes should be considered and discussed with a PwC contact.