Papua New Guinea Tax Profile

5 Other Taxes Customs duty Excise duty Stamp duty Property tax Training Levy Inheritance / gift tax Other taxes Customs duties are levied on the value (i.e. cost of goods, insurance and freight charges) of a wide range of imported goods. The rates of duty vary depending on the nature of goods. Higher rates apply to some items that include alcoholic beverages, fruit juices, aerated water, tobacco, sugar, canned fish, petroleum products, and certain motor vehicles. Excise duty is levied on a number of commodities including tobacco, alcoholic beverages, and aerated mineral waters. The rates vary between the products and are based on the value of the goods. The range of products subject to excise duties has increased after the introduction of GST, to replace revenue lost by the reduction or removal of certain custom duties. Stamp duty is imposed on documents evidencing the transfer of shares, conveyance of real property, leases, etc. The rate of stamp duty depends on the nature of the documents and transactions (e.g. the stamp duty on the transfer of real property can be as high as five percent). Land tax is imposed by the Provincial Governments. The rate of Land tax in the National Capital District is 1.25 percent of valuation. A training levy of two percent is assessed on annual payrolls in excess of PGK 200,000. Payroll is defined to include all salaries or wages paid by the employer together with taxable benefits provided, and gratuities and superannuation benefits paid to employees. The levy is reduced by eligible costs incurred in the training of Papua New Guinea citizen employees. There are no inheritance taxes in Papua New Guinea. There is no gift duty in Papua New Guinea but stamp duty at "gift rates" is levied on any document evidencing a gift, or if, in the opinion of the Commissioner, there is inadequate consideration. The maximum duty is five percent. • Timber export duty • Spice export levy • Gaming machine tax KPMG . Debit tax © 2015 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 9

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