Papua New Guinea Investment Income Guide 2026

Overview — Investment Income Taxation

PNG taxes investment income primarily through withholding taxes applied at source. The withholding tax is generally a final tax for resident individuals, meaning no further tax reporting is required. For companies, withheld tax is creditable against corporate tax. For non-residents, withholding tax rates may be reduced under applicable double tax treaties. The Internal Revenue Commission administers all withholding tax under the Income Tax Act. The investment landscape in PNG includes government securities, bank deposits, listed shares, and corporate bonds.

Dividends — Withholding Tax

Dividends paid by PNG-resident companies are subject to withholding tax. The standard rates are:

• Resident individuals — 15% final withholding tax
• Resident companies — 15% withholding tax (creditable against CIT)
• Non-residents — 15% (may be reduced under DTTs)

Dividends paid to non-residents may qualify for reduced rates under PNG's double tax treaties: Australia (15%), New Zealand (15%), Singapore (15%), and UK (15%). Certain dividends from mining companies may be subject to additional tax treatment. The withholding tax is deducted by the company paying the dividend and remitted to IRC.

Interest Income — Withholding Tax

Interest income is subject to withholding tax at the following rates:

• Bank deposit interest — 15% final withholding tax for residents
• Government securities (Treasury bills, bonds) — 15% final withholding tax
• Corporate bond interest — 15% withholding tax
• Non-residents — 15% (may be reduced under DTTs)

The withholding tax on interest is generally a final tax for resident individuals, meaning the interest income does not need to be included in the annual tax return. For companies, the withheld tax is creditable against CIT. PNG does not have a separate capital gains tax on the disposal of government securities, making them tax-efficient for investors focused on capital appreciation.

Capital Gains on Shares

As noted in the capital gains guide, PNG does not tax capital gains on shares. This applies to both listed and unlisted PNG companies. Foreign investors can dispose of PNG shareholdings without incurring PNG capital gains tax. This favourable treatment makes PNG an attractive jurisdiction for equity investment, though investors should consider tax implications in their home country. The absence of CGT on shares is a significant advantage for private equity and venture capital investors.

FAQs

Do I need to report dividend income on my tax return?

If you are a resident individual, the 15% withholding tax on dividends is final, so no further reporting is needed. Non-residents and corporate shareholders should report and claim treaty relief where applicable.

Are foreign investment income and capital gains taxable in PNG?

Yes, tax residents are taxed on worldwide investment income. Foreign dividends, interest, and other investment income should be declared in the annual tax return. Foreign tax credits may be available under DTTs.

Can I claim a refund if WHT exceeds my tax liability?

Yes, where the withholding tax deducted exceeds the final tax liability, you can claim a refund from IRC by filing an annual return.

Disclaimer

This guide provides general information about investment income taxation in Papua New Guinea for the 2026 tax year. Tax laws and rates 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.