PAPUA NEW GUINEA

Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates (2023 Budget) (Amendment) Act 2022

No. 73 of 2022.
Certified on: 12 JAN 2023

ARRANGEMENT OF SECTIONS.
1. General rates of income tax on taxable income payable by resident persons other than companies (Amendment of Schedule 1).
2. Rates of income tax payable by a company other than a company in the capacity of a trustee (Amendment of Schedule 4).

AN ACT
entitled
Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates (2023 Budget) (Amendment) Act 2022,
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 ‑
	(a) in respect of Section 1 -
	(i) Table 4A for the period 1 June 2022 to 31 December 2022; and
	(ii) Table 5 for the period 1 January 2023 to 31 December 2023; and
	(b) in respect of Section 2(b) - on 1 January 2023.
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) in the heading of Table 4 by repealing the words "and onwards" and replacing them with the following:
	"to 31 May 2022"; and
	(b) by inserting, after Table 4, the following new tables:
	"Table 4A - Rates of Tax for the period 1 June 2022 to 31 December 2022.
Column 1.
Parts of taxable income.	Column 2.
Percentage	
The part of the taxable income that -		
does not exceed K17,500.00	0	
exceeds K17,500 but does not exceed K20,000.00	22	
exceeds K20,001.00 but does not exceed K33,000.00	30	
exceeds K33,001.00 but does not exceed K70,000.00	35	
exceeds K70,001.00 but does not exceed K250,000.00	40	
exceeds K250,0001.00.	42	
	Table 5. - Rates of tax for the period 1 January 2023 to 31 December 2023.
Column 1.
Parts of taxable income.	Column 2.
Percentage	
The part of the taxable income that -		
does not exceed K20,000	0	
exceeds K20,001.00 but does not exceed K33,000.00	30	
exceeds K33,001.00 but does not exceed K70,000.00	35	
exceeds K70,001.00 but does not exceed K250,000.00	40	
exceeds K250,0001.00.	42	
2	RATES OF INCOME TAX PAYABLE BY A COMPANY OTHER THAN A COMPANY IN THE CAPACITY OF A TRUSTEE (AMENDMENT OF SCHEDULE 4). 
Schedule 4 of the Principal Act is amended -
	(a) by repealing Schedule 4.1 and replacing it with the following:
	"SCHEDULE 4.1.		RESIDENT CORPORATIONS (OTHER THAN INCOME DERIVED BY A COMPANY FOR WHICH RATES ARE SET IN SCHEDULES 4.4, 4.8, 4.9 OR 4.11) OF PAPUA NEW GUINEA.	
	In the case of a company (other than income derived by a company for which rates are set in Schedules 4.4, 4.8, 4.9 or 4.11) that is a resident corporation of Papua New Guinea, the rate of income tax (other than additional tax under Section 138 of the Principal Act) is in relation to income derived on or after 1 January 2003, 30% of the taxable income."; and			
	(b) by inserting, after Schedule 4.10, the following new sub-schedule:
	"SCHEDULE 4.11.		COMMERCIAL BANKS.	
	In the case of a company that is a financial institution licensed to operate as a commercial bank under the Banks and Financial Institutions Act 2000, the rate of income tax is 45% of the taxable income.".	

I hereby certify that the above is a fair print of the Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates (2023 Budget) (Amendment) Act 2022, which has been made by the National Parliament.
Acting Clerk of the National Parliament. 
12 JAN 2023
I hereby certify that the Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates (2023 Budget) (Amendment) Act 2022, was made by the National Parliament on 2 December 2022.
Speaker of the National Parliament.
12 JAN 2023