Papua New Guinea

{"ftc_utility":"high","fbar_trigger_notes":"Expats working in PNG typically maintain local PGK bank accounts for salary payments or daily expenses. If aggregate balances across all foreign accounts exceed USD 10,000 at any point during the year, FBAR filing is required. PNG bank accounts at BSP, Kina Bank, or ANZ PNG would trigger FBAR if the threshold is met.","ftc_utility_reason":"PNG taxes residents on worldwide income at rates up to 42%, which exceeds US rates in many brackets. For income above the FEIE exclusion limit, the Foreign Tax Credit is highly useful because PNG income taxes paid can offset US tax liability dollar-for-dollar, often eliminating double taxation on earned income that exceeds the exclusion.","presence_day_count_notes":"PNG does not impose rigid visa-based day limits that would structurally prevent the 330-day physical presence test. Work permit holders and long-term residents can accumulate the required 330 days in a 12-month period. Entry and exit tracking is required as PNG immigration controls all arrivals. US citizens working in PNG under employment contracts typically qualify under bona fide residence given the remote nature of many expat postings.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.42,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by PNG residents is included in assessable income and taxed at progressive rates up to 42%. PNG's domestic law does not provide a blanket exemption for foreign pension income and there is no US-PNG tax treaty to reduce the tax burden.","tax_rate":0.42,"locally_taxed":true},"social_security":{"notes":"No US-PNG tax treaty. US Social Security benefits received by a PNG tax resident could be assessed as foreign income. PNG taxes residents on worldwide income, so there is no domestic exemption and no treaty to limit taxation.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"No US-PNG tax treaty exists. Roth IRA distributions are not specifically exempt under PNG domestic law. A PNG-resident recipient would generally include these in assessable income. The absence of a treaty means no special protection applies.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"There is no US-PNG double tax treaty. US 401(k) and IRA distributions received by a PNG tax resident are treated as foreign-sourced pension or retirement income. PNG taxes residents on worldwide income, so distributions would be included in assessable income and taxed at progressive rates up to 42%. No treaty relief is available.","tax_rate":0.42,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.42,"notes":"PNG does not have a separate capital gains tax. Gains on disposal of assets are generally not taxed unless they are revenue in nature or arise from the sale of assets used in a business, in which case they are taxed as ordinary income at progressive rates up to 42%.","details":{"tax_type":"Capital Gains Tax","country_name":"Papua New Guinea","country_iso_code":"PNG","source_references":["PwC Worldwide Tax Summaries - Papua New Guinea","IRC Papua New Guinea"],"last_verified_date":"2026-06-03","general_description":"PNG has no standalone capital gains tax. Gains on disposal of capital assets held outside of a business context are generally exempt. Where gains are treated as income (e.g. trading in assets, assets forming part of a business), they are subject to ordinary income tax rates. The top marginal personal income tax rate is 42% on taxable income above PGK 250,000.","corporate_capital_gains":{"rate":0.3,"tax_treatment":"No separate CGT. Capital gains of a revenue nature are included in assessable income and taxed at the standard corporate rate of 30%. Purely capital gains are generally not taxable."},"individual_capital_gains":{"rate":0.42,"tax_treatment":"No separate CGT for individuals. Gains of a capital nature on personal assets are generally exempt. Gains treated as income (e.g. from carrying on a business of dealing in assets) are taxed at progressive personal income tax rates up to 42%."}}}

{"notes":"Dividends paid by PNG-resident companies are subject to a dividend withholding tax (DWT). The standard DWT rate is 17% for residents and 17% for non-residents (certain treaty-reduced rates apply). Dividends received from companies that have already paid PNG tax may carry an imputation credit system element. Non-resident shareholders face DWT as a final tax.","rates":[{"rate":0.17,"type":"withholding","notes":"Standard DWT rate applicable to both resident and non-resident shareholders. Treaty rates may reduce this for eligible non-residents."},{"rate":0.1,"type":"withholding","notes":"Reduced treaty rate available under certain double tax agreements (e.g. Australia). Rate varies by treaty."}]}