# Papua New Guinea

 Country code: PG · Currency: PGK · Language: English

**Pros**
- Abundant natural resources for private extraction and export-led growth
- Minimal state presence in rural regions for greater operational autonomy and self-governance
- Strategic Special Economic Zones with significant tax exemptions and streamlined regulatory frameworks

**Cons**
- Pervasive corruption and systemic bribery within public administration and land ownership disputes
- High security risks and violent crime requiring substantial private investment in protection services
- Inadequate infrastructure and unreliable utility services causing high operational costs and logistical complexity

Long story short: In Papua New Guinea, the tax that really counts isn't the official 30% rate, it's the bribe. Permits, containers, customs officers: everything has its price.

On the flip side, it's a nearly untouched market: mining, gas, coffee, cocoa, with barely any serious competition. Banks (BSP, ANZ, Westpac) are solid, but getting your profits out in foreign currency is a real administrative headache.

Other things worth knowing: in Waigani or Ela Beach, tucked behind walls and guards, you're safe. Food is pricey and mostly imported, but the fresh fish is excellent. And the scenery is breathtaking, reefs and jungle included.

## Will your income be taxed?

Long story short: YES, A LOT.
Income gets *fleeced* in **Papua New Guinea** (top marginal rate **42%**), but the residency test is surprisingly hands-off.

The bill is brutal for residents; the whole game is simply not to become one by accident.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 30 → 42% | progressive · 5 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 4,500 | 30% |
| 4,500 – 7,425 | 35% |
| 7,425 – 15,750 | 40% |
| 15,750 – 56,249 | 42% |
| 56,249 + | 42% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | exists here |  |
| Economic interest | does not exist here |  |
| Family centre | does not exist here |  |
| Habitual abode | exists here |  |
| Extended-stay test | does not exist here |  |

## Will your wealth be taxed?

Long story short: NO.
**Papua New Guinea** keeps its hands off what you hold. *No capital gains tax*, no annual wealth grab, no inheritance regime.

Your portfolio compounds in peace and leaves the way it came in; nobody's standing at the door with their palm out.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 0% | flat |
| Dividend tax | 15% | flat |
| Interest income | 15% | flat |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | UNREGULATED | Fallback rate: 42% · Papua New Guinea has no specific cryptocurrency tax legislation. The Internal Revenue Commission (IRC) applies general income tax principles under the Income Tax Act 1959 and the new Income Tax Act 2025 (effective January 1, 2026). While PNG lacks a general Capital Gains Tax (CGT), profits derived from 'profit-making schemes' or 'undertakings' are taxed as ordinary income at progressive personal rates up to 42%. The Bank of Papua New Guinea (BPNG) has issued public notices stating that cryptocurrencies are not legal tender and are not regulated by the central bank. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: NO.
Corporate tax in **Papua New Guinea** is **35%**, no IP-box mercy, VAT at **10** on top.

Operationally, running a company here is fine; fiscally, the state helps itself to a fat slice of every unit of profit. You do the work, they skim the cream.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 35% | progressive · +15% branch profits tax for non-resident PEs |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 67,498,800 | 35% |
| 67,498,800 + | 35% |

| Metric | Value | Detail |
| --- | --- | --- |
| VAT standard rate | 10% | single rate · no reduced tiers |

| VAT family | Category | Rate |
| --- | --- | --- |
| Food & drink | food | 10% |
| Food & drink | non-alcoholic | 10% |
| Food & drink | alcohol | 10% |
| Print media | books | 10% |
| Print media | ebooks | 10% |
| Print media | newspapers | 10% |
| Culture | cultural events | 10% |
| Culture | cinema | 10% |
| Culture | theatre | 10% |
| Culture | museums | 10% |
| Culture | sports | 10% |
| Transport | public transit | 10% |
| Transport | rail | 10% |
| Transport | air | 10% |
| Hospitality | hotels | 10% |
| Hospitality | restaurants | 10% |
| Hospitality | takeaway | 10% |
| Health | pharma | 10% |
| Health | medical dev. | 10% |
| Energy | electricity | 10% |
| Energy | natural gas | 10% |
| Energy | district heat. | 10% |
| Energy | domestic fuel | 10% |
| Utilities | water | 10% |
| Utilities | waste | 10% |
| Clothing | kids clothing | 10% |
| Digital & telecom | digital | 10% |
| Digital & telecom | telecom | 10% |
| Digital & telecom | broadcast | 10% |
| Construction | construction | 10% |
| Construction | social housing | 10% |
| Agriculture | farm inputs | 10% |
| Agriculture | animal feed | 10% |
| Personal services | funeral | 10% |
| Personal services | hairdressing | 10% |
| Finance | insurance | 10% |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | NO CRIMINAL | no criminal liability · In Papua New Guinea, which follows common law principles, the misuse of corporate assets by a sole shareholder-director of a solvent company is generally not a criminal offense. While Section 190 of the Companies Act 1997 and Section 383A of the Criminal Code Act 1974 prohibit the 'fraudulent' or 'dishonest' application of company property, these charges require a lack of consent or an intent to defraud. In a solvent company where the sole owner is the 'directing mind and will,' the company is deemed to have consented to the transaction, negating the element of dishonesty. Consequently, such actions are treated as a civil breach of fiduciary duty or a tax matter (e.g., a deemed dividend). |
| Shareholders privacy | PUBLIC PAYWALL | Investment Promotion Authority (IPA) |
| Directors privacy | PUBLIC PAYWALL | Investment Promotion Authority (IPA) |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Proprietary Company (Private Limited Company). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| IPA Online Incorporation Fee | USD 101 |  |
| Foreign Enterprise Certification Fee (Mandatory for foreign-owned entities) | USD 450 |  |
| Professional Legal and Incorporation Service Fees | USD 787 |  |
| Total | USD 1,339 |  |

## A good fit for a holding?

Long story short: YES, BUT THIN.
**Papua New Guinea** runs a *full participation exemption* (**100%** on qualifying dividends and gains), but the treaty network is *skinny* (**3** agreements): in plenty of geographies your dividends get clipped at the source before they ever reach the holding.

Fine for a regional play, undersized for a global one.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | 100% | 10% holding |
| CFC rules | APPLY | The regime attributes passive income from low-tax foreign entities to PNG residents holding at least 50% interest, making it taxable in the year it arises. |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 15% | non-resident outbound |
| WHT · interest | 15% | non-resident outbound |
| WHT · royalties | 10% | non-resident outbound |
| Tax-haven WHT | 15% | penalty rate · blacklisted destinations |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 3 | active |
| Treaties pending | — | in negotiation |

## Easy to come and go?

Long story short: SOME.
**Papua New Guinea** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | ALLOWED | naturalised citizens may keep their existing nationality |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 8 years | available path to naturalisation |
| Marriage | — | not available |
| Birth | — | not available |
| Descent | — | not available |
| Investment | — | not available |

## Is your money watched?

Long story short: PARTLY.
**Papua New Guinea** has signed *most* of the standard exchange frameworks *and* runs a public corporate registry. Your accounts get reported to your home tax office, and your shareholdings sit in the shop window.

Watched on both axes: not wall-to-wall, but don't come here for discretion.

**Multilateral reporting frameworks — 3/9 active · 3 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | Signed | 2027 |
| CARF | None | — |
| FATCA | None | — |
| MLI | In force | 2023 |
| BEPS | Signed | — |
| MAAC | In force | 2023 |
| GLOBAL FORUM | Signed | — |
| EOIR | In force | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: YES.
**Papua New Guinea** sits on the **FATF grey/black list**, the one flag that chases a transaction around the planet.

Enhanced due diligence becomes mandatory for your counterparties everywhere, correspondent banking dries up, and some institutions slam the door outright.

No structuring cleverness offsets a FATF listing: the compliance cost is welded to the country's name.

**Blacklist exposure — Listed by 1 authority**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Listed | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: PARTLY.
**Papua New Guinea** sits in the *middle band* of the RSF press-freedom index (rank **\#78**): civil society functions, but the walls are real and you'll learn fast where they stand.

Crypto lives in the standard regulated tier.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 78/180 | score 58 · ↑ 13 ranks year-on-year |

Central bank digital currency

    Program Status Cross-border Sources     Papua New Guinea CBDC

Central Bank of Papua New Guinea

   PROOF OF CONCEPT   —   [announce →](https://www.bankpng.gov.pg/central-bank-digital-currency-cbdc-proof-concept "Announcement")

 programs 1

## Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in **Papua New Guinea**. *Stripe* won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. *Amazon* doesn't deliver either.

Some secondary services run (**3/11**), but for an online business this is swimming against the current.

**Accept payments — 1/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Not available | wallet payments |
| Adyen | Not available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 1/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

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