The corporate tax regime in Papua New Guinea

Ken Devos

Research output: Chapter in Book/Report/Conference proceedingChapter (Report)Research

Abstract

Papua New Guinea (PNG) has witnessed outstanding economic growth over the past 10 years, accounting for 2.3 percent of the South Pacific region’s gross domestic product (GDP). However, according to the Department of Treasury, the country’s impressive economic growth has not been translating into optimal fiscal and revenue yields. The threat to the revenue is projected to reach K1.2 billion by 2018. Consequently, in an effort to stem this potential loss of revenue and improve tax collection and administration, an immediate analysis of the tax regime is critical.
The aim of this paper is to investigate the corporate income tax regime in PNG and make recommendations for tax reform with the view to improving future revenue collections. The paper is organised as follows. Following this introduction, Section 2 briefly outlines the main features of the corporate tax regime in PNG. Section 3 identifies concerns with the current corporate tax regime, including revenue trends over the past 5 years. Section 4 describes the features of a good corporate tax system and best-practice measures as derived from the Organisation for Economic Co-operation and Development (OECD). Based on some of these features and practices, Section 5 considers the various options for corporate tax reform in PNG. Section 6 provides an evaluation of the main options, considering the advantages and disadvantages of each. Finally, Section 7 concludes by indicating both the short-term and long-term priorities and tax-policy implications for the corporate tax system in PNG.
Original languageEnglish
Title of host publicationSpecial Report
Subtitle of host publicationProceedings of the 2014 Papua New Guinea Tax Review and Research Symposium
EditorsFrancis Odhuno
Place of PublicationBoroko NCD Papua New Guinea
PublisherThe National Research Institute Papua New Guinea
Pages77-100
Number of pages24
ISBN (Print)9980752289
Publication statusPublished - Nov 2016
EventPapua New Guinea Tax Review and Research Symposium - Port Moresby, Papua New Guinea
Duration: 29 May 201430 May 2014

Other

OtherPapua New Guinea Tax Review and Research Symposium
CountryPapua New Guinea
CityPort Moresby
Period29/05/1430/05/14

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