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 DIRECT TAXES - Tax Incentives
(click on
heading below then click again)
Accelerated
Depreciation
Initial year Depreciation
 Export
Sales
Export Market Development
Rural
Development
East New
Britain/Bouganville
Staff Training
Tax
Incentives
PNG offers a number of
attractive tax incentives which new and existing investors may wish to take
advantage of.
Export
Sales Exemption
This incentive allows 100%
of the net income derived from export sales of a wide variety of goods for
three years to be treated as exempt income. (The list is specified in the
Income Tax Act.) Between year's four and seven, any export income which is in
excess of the average of the prior years can be treated as exempt.
Double
Deduction for Export Market Development Costs
The scheme applies to
expenditure on export market development for goods manufactured in Papua New
Guinea. These expenditures qualify for double deduction, provided the tax
saving in less than 75% of the cost of the expenditure: i.e. the Government
is in effect subsidising up to 75% of the cost of this form of expenditure.
The types of expenditure which qualify, include overseas publicity and
advertising, market research, tender preparation, samples, trade fair
expense, overseas sales and office expenses.
Rural
Development Incentive
This scheme was designed to
allow income tax exemption on the net income of new businesses set up in
specifically designated under developed areas that are not dependent on the
exploitation of nature resources. It provides for exemption to businesses in
a rural development industry for up to 10 years after the first year of
commencement of business. Losses arising from the newly exempt activities are
deductible against taxable income from other activities.
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and Print Tax Incentives (Incentives.PDF 7KB)
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