PAPUA NEW GUINEA

INCOME TAX, DIVIDEND (WITHHOLDING) TAX AND INTEREST (WITHHOLDING) TAX RATES (2008 BUDGET AMENDMENT) ACT 2007

No. 31 of 2007

Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates (2008 Budget Amendment) Act 2007.

Certified on: 11.03.08

Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates (2008 Budget Amendment) Act 2007.

ARRANGEMENT OF SECTIONS.

1. General Rates of income tax on taxable income payable by resident persons other than companies (Amendment of Schedule 1).
2. General rates of income tax on taxable income payable by non-resident persons other than companies (Amendment of Schedule 1A).
3. Non Resident Corporations (Other than Petroleum, Gas and Mining Companies) (Amendment of Schedule 4.2).
4. Mining, Petroleum and Gas Income (Amendment of Schedule 4.4).
____________________

No. of 2007.

AN ACT

entitled

Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates (2008 Budget Amendment) Act 2007,

Being an Act to amend the Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates Act 1984.

MADE by the National Parliament and deemed to come into operation on 1 January 2008.

1. GENERAL RATES OF INCOME TAX ON TAXABLE INCOME PAYABLE BY RESIDENT PERSONS OTHER THAN COMPANIES (AMENDMENT OF SCHEDULE 1).

Schedule 1 of the Principal Act is amended –

(a) by repealing the words "and onwards" in the heading of Table 2 and inserting the following new words "to 31 December 2007"; and

(b) by inserting the following new table:–

Table 3 — Rates of Tax for the period 1 January 2008 and onwards

Column 1 
Parts of Taxable Income	Column 2
Percentage	
The part of the taxable income that –		
Does not exceed K7,000.00
	0	
exceeds K7,000.00 but does not exceed K18,000.00
	22	
exceeds K18,000.00 but does not exceed K33,000.00
	30	
exceeds K33,000.00 but does not exceed K70,000.00
	35	
exceeds K70,000.00 but does not exceed K250,000.00
	40	
exceeds K250,000.00
	42	

2. GENERAL RATES OF INCOME TAX ON TAXABLE INCOME PAYABLE BY NON-RESIDENT PERSONS OTHER THAN COMPANIES (AMENDMENT OF SCHEDULE 1A).

Schedule 1A of the Principal Act is amended by –

(a) repealing the words "and onwards" in the heading of Table 2 and inserting the following new words "to 31 December 2007"; and

(b) inserting the following new table:–

Table 3 — Rates of Tax for the period 1 January 2008 and onwards

Column 1 
Parts of Taxable Income	Column 2
Percentage	
The part of the taxable income that –		
Does not exceed K18,000.00
	22	
exceeds K18,000.00 but does not exceed K33,000.00
	30	
exceeds K33,000.00 but does not exceed K70,000.00
	35	
exceeds K70,000.00 but does not exceed K250,000.00
	40	
exceeds K250,000.00
	42	

3. NON RESIDENT CORPORATIONS (OTHER THAN PETROLEUM, GAS AND MINING COMPANIES) (AMENDMENT OF SCHEDULE 4.2).

Schedule 4.2 of the Principal Act is repealed and replaced with the following:–

"In the case of income of a company (other than assessable income from petroleum operations or from gas operations or from mining operations) that is a non-resident corporation, the rate of income tax is 48% of the taxable income.".

4. MINING, PETROLEUM AND GAS INCOME (AMENDMENT OF SCHEDULE 4.4).

Schedule 4.4 of the Principal Act is repealed and replaced with the following:–

"(1) The rate of tax in respect of income from –

(a) petroleum operations attributable to a new petroleum project is 45% of the taxable income; and

(b) incentive rate operations is 30% of the taxable income; and

(c) petroleum operations other than those in Paragraph (a) or (b) is 50% of the taxable income; and

(d) gas operations is 30% of the taxable income; and

(e) mining operations carried out by a resident company, is 30% of the taxable income; and

(f) mining operations carried out by a non-resident company, is 40% of taxable income.".
____________________

I hereby certify that the above is a fair print of the Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates (2008 Budget Amendment) Act 2007 which has been made by the National Parliament.

Clerk of the National Parliament.
11 MAR 2008

I hereby certify that the Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates (2008 Budget Amendment) Act 2007 was made by the National Parliament on 29 November 2007.

Speaker of the National Parliament.
11 MAR 2008