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 DIRECT TAXES - Taxation of
Companies
(click on
heading below then click again)
 Liability of resident companies
What is
a resident company
Determination
of income
Company
tax rates
Payment of tax
Payment of dividend withholding tax
Tax Credits
Liability
of resident companies
A resident company is taxed
in Papua New Guinea on its world wide income. Non resident companies pay tax
only on their Papua New Guinea sourced income.
What
is a resident company
A resident company is one
which is incorporated in Papua New Guinea, or not being incorporated in Papua
New Guinea, carries on business in Papua New Guinea and its management and
control is located in Papua New Guinea, or the majority of its shareholders
are resident of Papua New Guinea.
Determination
of income
The income of a company is
determined in accordance with normal accounting principles. There are some
exceptions to the general statement which are set out later under incentives
for special industries.
Company
tax rates
Resident companies are taxed
at the rate of 30% on net profits. Company distributions are subject to a 17%
dividend withholding tax. The tax rate for non-resident companies (branches)
is 48% of net profits. No further tax is imposed on remittances of branch
profits out of the country. Companies deriving income from mining, petroleum
or gas projects are subject to separate tax regimes. The tax rates are 30% on
mining projects. 45% or 50% on petroleum projects and 30% on designated gas
projects.
  View and Print Taxation of Companies (Tax of Co.PDF
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