To make PNG more attractive to international investors the Government will continue the process of negotiating and bringing into force agreements with other countries limiting double taxation of incomes in Papua New Guinea.

Listed below is the situation as it currently stands between Papua New Guinea and various key trading partners:

Double Taxation Agreements have been signed with Australia, Canada, Fiji, Germany, and the People’s Republic of China, Malaysia, Singapore, South Korea and the United Kingdom. The agreement with Germany, however, is yet to be ratified, while a treaty with Indonesia is in its final stage for gazettal notification.

Double Taxation Agreements are being considered for the following countries: the United States of America, New Zealand, the Philippines and Thailand.

Employers

Any person or business, employing one or more employees in Papua New Guinea paid more than K237 per fortnight must register as a Group Employer with the IRC. The employer is provider with tax deduction schedules and remittance forms and is required to deduct the correct tax from employees’ wages and remit it monthly to the IRC.

Companies

If engaged in business in Papua New Guinea, companies must appoint a Public Officer who is the representative of the company in all its dealings with the IRC. The public officer need not be an employee or shareholder of the Company but must be resident in Papua New Guinea.