Papua New Guinea Inheritance & Gift Tax Guide 2026

Overview — No Inheritance or Gift Tax

PNG is one of the most tax-advantageous jurisdictions for wealth transfer. There is no inheritance tax, no estate duty, and no gift tax on lifetime transfers. Assets can pass to heirs entirely free of PNG tax. This absence of transfer taxes applies to all asset classes including cash, real estate, shares, business interests, and personal property. The only potential tax consequence is that the heir inherits the deceased's cost base for future income tax purposes (no step-up in basis). This makes PNG particularly attractive for high-net-worth individuals and families looking to preserve intergenerational wealth.

Lifetime Gifts — No Gift Tax

Gifts made during the donor's lifetime are not subject to gift tax in PNG. There is no limit on the amount that can be given tax-free, and no distinction based on the relationship between donor and recipient. Cash, real estate, shares, and other assets can be transferred as gifts without PNG tax consequences. However, if the donor later dies within a certain period, the gift may be considered for inheritance purposes under the relevant succession law. Professional advice is recommended for significant lifetime transfers to ensure proper documentation.

Inheritance — No Estate Duty

Assets inherited upon death are not subject to estate duty or inheritance tax in PNG. The heir receives the asset at the deceased's cost base for tax purposes. This means that if the heir later sells an inherited asset, capital gains (if any) are calculated based on the original cost base, not the value at the date of death. Since PNG does not have a general CGT, there is typically no tax on the sale of inherited assets except for mining assets. The absence of estate duty means that the full value of the estate passes to the beneficiaries without any tax deduction.

Wills & Probate

Having a valid will is essential to ensure assets pass according to the deceased's wishes. Key aspects of wills and probate in PNG:

• Will requirements — must be in writing, signed by the testator in the presence of two witnesses
• Executor — the will should appoint an executor to administer the estate
• Probate — the legal process of recognising the will and granting authority to the executor
• Intestacy — if no will exists, the estate is distributed under the Wills, Probate and Administration Act and customary law

Probate fees in PNG are relatively low. The process involves applying to the National Court with the will, death certificate, and inventory of assets. Foreign nationals with assets in PNG should have a separate PNG will covering their PNG assets.

Customary Succession

Customary law plays a significant role in succession in PNG, particularly for customary land and traditional assets. Customary succession is governed by the customs of the deceased's clan or tribe and may differ significantly from statutory law. For individuals with both customary and non-customary assets, estate planning can be complex. It is advisable to seek legal advice from practitioners experienced in PNG customary law and succession.

FAQs

Do I need to pay tax on inherited property if I sell it?

No, PNG does not have a general CGT. You can sell inherited property (non-mining) without incurring PNG tax. If you are a property dealer, the gain may be treated as business income.

Is there any tax on gifts between family members?

No, PNG does not impose gift tax. Gifts between family members of any amount are tax-free.

Does PNG recognise foreign wills?

Foreign wills may be recognised but must go through the probate process in PNG to be effective for PNG assets. It is generally advisable to execute a separate PNG will.

Disclaimer

This guide provides general information about inheritance and gift taxation in Papua New Guinea for the 2026 tax year. Succession law is complex and intersects with customary law. Always consult with a qualified PNG lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax or legal advice.