Home General Information Direct Taxes Indirect Taxes Contact Us Links Downloading Reports  will require Acrobat  Reader. (click below)	DIRECT TAXES (click on heading below then click again) Taxation of Individuals Taxation of Companies Taxation of Resource Projects Taxation of Trusts Duties of Employers Training Levy Interest Withholding Tax Royalty Tax Foreign Contractors Management Fees Overseas Ships Tax Information Tax Incentives Interest Withholding Tax From 1 January 1999 most interest derived by residents or from sources within PNG became taxable. The Government introduced a 15% Interest Withholding Tax on some interest payments . This tax is an interim tax except in the case of non-resident recipients. Royalty Tax When paid by a Papua New Guinean resident to an overseas recipient are subject to a withholding tax of-
		(i) where the royalty is paid to an arms length or unassociated person- 10% of the gross royalty or, at the option of the recipient, 48% of net profits; or
		(ii) where the royalty is paid to an associated company or individual;- 30% of the gross.
	Foreign Contractors A non-resident contractor engaged by a PNG resident to perform a contract for prescribed purposes is liable for tax on 25% of the gross contract value at the non-resident tax rate of 48%. The effective tax rate is 12%. Prescribed purposes include the following; Construction, installation, use of industrial equipment, or provision of professional or consultancy services. Management Fees Management fees paid to a non-resident who is not carrying on business through a permanent establishment in PNG are subject to 17% withholding tax. Overseas Ships 5% of the gross freight charge derived by the operator of an overseas ship for goods shipped in PNG is subject to tax at the non-resident rate of 48% GIVING AN EFFECTIVE TAX OF 2.4%. The tax applies to shipping of goods between PNG ports and the uplift of goods from a PNG port. View and Print Direct Taxes (Direct Tax.PDF 41KB)

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