Papua New Guinea Capital Gains Tax Guide 2026
Papua New Guinea does not impose a comprehensive capital gains tax. Capital gains are generally not taxed in PNG except for gains arising from the disposal of mining and petroleum assets, which are treated as ordinary income. Gains from the sale of shares, real property (other than mining), and other capital assets are not subject to CGT. This favourable treatment makes PNG an attractive jurisdiction for investors, though specific rules apply to the resources sector.
Overview — CGT in PNG
PNG is one of the few countries that does not levy a general capital gains tax. The Income Tax Act specifically exempts capital gains from income tax for most asset classes. The key exception is for gains from the disposal of mining and petroleum assets, which are taxed as ordinary income at the applicable corporate or individual rate. This exemption covers shares, real estate (non-mining), personal assets, and business assets. The absence of CGT makes PNG a tax-efficient jurisdiction for investment holding and asset disposals.
Mining & Petroleum Assets — Taxed as Income
Gains from the disposal of assets used in mining and petroleum operations are treated as ordinary income and taxed at the applicable rate. This includes the sale of mining tenements, mineral rights, petroleum licences, and related infrastructure. The gain is calculated as the difference between the disposal proceeds and the written-down tax value of the asset. Mining companies pay tax at 20% on these gains (the concessional mining CIT rate). Individual miners are taxed at their marginal IIT rate.
Exempt Assets — No CGT
The following asset disposals are not subject to capital gains tax in PNG:
- Shares & securities — both listed and unlisted shares
- Real property — residential, commercial, and land (non-mining)
- Business assets — plant, machinery, goodwill (non-mining)
- Personal assets — motor vehicles, artwork, collectibles
- Cryptocurrency — treated as income, not capital
While no CGT applies, gains on certain assets may be subject to income tax if the taxpayer is considered to be trading (e.g., property developers, frequent traders). The distinction between capital and revenue is based on the taxpayer's intention and frequency of transactions.
Property & Real Estate
Gains from the sale of real property (land and buildings) are generally not subject to CGT in PNG. However, if the vendor is a property developer or dealer (buying and selling properties as a business), the gains are treated as ordinary business income and taxed at the applicable rate. Individuals selling their principal residence are not taxed on the gain. There is no stamp duty on share transfers, but property transfers attract stamp duty at 1–5% sliding scale.
FAQs
Do I pay tax when I sell shares in a PNG company?
No, gains from the sale of shares in PNG companies are not subject to capital gains tax. However, dividends paid by the company may be subject to withholding tax.
Is there a CGT on property sales?
Generally no, unless you are a property developer or dealer. Occasional sale of a personal residence or investment property is not subject to CGT.
How are mining asset gains taxed?
Gains from mining asset disposals are treated as ordinary income and taxed at the mining CIT rate of 20% or the individual's marginal IIT rate.
Disclaimer
This guide provides general information about capital gains tax in Papua New Guinea for the 2026 tax year. Tax laws may change. Always consult with a qualified PNG tax advisor or the Internal Revenue Commission for advice specific to your situation. InvestmentKit does not provide tax advice.