Papua New Guinea Tax Profile

1 Corporate Income Tax Corporate Income Tax Tax Rate Residence Compliance requirements Income Tax The standard resident corporate rate is 30 percent and standard non-resident corporate is 48 percent. Different rates may apply to companies that generate income from mining, petroleum or gas operations. A company is considered to be resident in Papua New Guinea if it is incorporated under Papua New Guinea law. Companies incorporated under foreign law are considered to be Papua New Guinea resident if they are carrying on business in Papua New Guinea and are effectively managed and controlled in Papua New Guinea. Resident companies are taxed on their worldwide income. Non-resident companies are taxed only on their Papua New Guinea source income. The tax year runs from January 1 to December 31 each year. Resident companies are required to lodge annual tax returns and non-resident companies are required to lodge a tax return if they derive Papua New Guinea sourced income. Tax returns must be lodged on or before February 28 of the following year. If the returns are lodged through a Papua New Guinea registered tax agent, the return may be lodged on or before April 30 of the following year or a later date if permission is granted by the Commissioner. Assessments are issued to taxpayers following lodgement of their tax return. Tax is generally payable within 30 days of receiving the assessment. In addition, companies pay three equal instalments of provisional tax on April 30, July 31 and October 31 of each year, based on the last assessment issued to the company. There are no provisions allowing for grouping or consolidation of tax returns. KPMG © 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. 1

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