DoubleTaxationTaxes on salary: Papua New Guinea preliminary data
How much income tax and social contributions are paid on a salary in Papua New Guinea, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | PGK 292,064 ≈ €60,000 |
|---|---|
| Income tax | PGK 106,517 ≈ €21,882 |
| Employee contributions | PGK 17,524 ≈ €3,600 |
| Take-home pay | PGK 168,023 ≈ €34,518 |
| Employer contributions and payroll taxes | PGK 24,533 ≈ €5,040 |
| Employer's labour cost | PGK 316,597 ≈ €65,040 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 PGK 146,032 | €60,000 PGK 292,064 | €120,000 PGK 584,128 |
|---|---|---|---|
| Company | PGK 39,429 30.0 % | PGK 78,857 30.0 % | PGK 157,714 30.0 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Papua New Guinea yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 4.867731 PGK (UN Treasury — UN operational rates of exchange, 2025-12-31) ↗
Sources
- PacLII — Income Tax (Salary or Wages Tax) (Rates) (2024 Budget) (Amendment) Act 2023 (PNG) (law text from a third-party publisher; no official copy found)
- PNG Department of Treasury — 2026 National Budget, Volume 1 (tax-free threshold K20,000 made permanent; Income Tax Act 2025 from 1 Jan 2026)
- PacLII — Income Tax, Dividend (Withholding) Tax and Interest (Withholding) Tax Rates (2023 Budget) (Amendment) Act 2022 (Schedule 4.1: resident corporation 30%) (law text from a third-party publisher; no official copy found)
- US SSA — Social Security Programs Throughout the World: Asia and the Pacific, 2018 — Papua New Guinea
- UN Treasury — UN operational rates of exchange (rate history per currency; January 2026 rate effective 31 Dec 2025)
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.