Taxation of international executives
Are there social security/social insurance taxes in Papua New Guinea? If so, what are the rates for employers and employees?
No social security taxes in Papua New Guinea.
Superannuation is not compulsory for expatriates.
Employers of 15 or more persons are required to register with an Approved Superannuation Fund. Membership of the fund is compulsory for citizens of Papua New Guinea and voluntary for expatriates.
For citizen employees, the employer is required to contribute 8.4 percent of the employee's gross taxable salary and the employee is required to contribute 6 percent. The maximum deductible amount that an employer may contribute for an employee is 15 percent of the employee's gross taxable salary.
Employer sponsored superannuation benefits accruing after 1 January 1993 are fully taxable on the termination of employment unless contributions have been made for the employee for more than 5 years, in which case a reduced rate of tax applies calculated according to the number of years contributions have been made and the age of the employee.
Are there any gift, wealth, estate, and/or inheritance taxes in Papua New Guinea?
There are no estate, gift, or inheritance taxes in Papua New Guinea, although stamp duty does apply on the gifting of assets such as real property.
Are there real estate taxes in Papua New Guinea?
Land tax is imposed at the provincial government level.
Are there sales and/or value-added taxes in Papua New Guinea?
Yes, at the standard rate of 10 percent subject to exemption or zero-rating of particular supplies.
Are there unemployment taxes in Papua New Guinea?
Are there additional taxes in Papua New Guinea that may be relevant to the general assignee?
For example, customs tax, excise tax, stamp tax and so on.
Customs and/or excise duty and GST may be payable on the import of goods
There are import duties and excise tax applicable to certain goods mainly with the intention of protecting local industries. Stamp duty applies to conveyances of real estate and other specified instruments.
Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?
Individuals are not required to declare/report offshore assets unless the individual is acting in the capacity of a director of a financial institution.
All information contained in this publication is summarized by KPMG, the Papua New Guinea member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on the Papua New Guinea Income Tax Act 1959 and the Papua Superannuation (General Provisions) Act 2000.
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