Internal Revenue Commission (IRC)

The Internal Revenue Commission (IRC) is Papua New Guinea’s national tax administration authority, responsible for the assessment and collection of all internal taxes. Established under the Internal Revenue Commission Act 2014, the IRC administers the country’s tax legislation and serves as the primary tax interface for both domestic and foreign entities operating in PNG.

Tax Administration Framework

The IRC administers several core tax types relevant to investors:

• Corporate Income Tax — applicable to resident and non-resident companies conducting business in PNG
• Goods and Services Tax (GST) — a broad-based consumption tax on the supply of goods and services
• Salary and Wages Tax — withholding obligations for employers
• Withholding Taxes — on dividends, interest, royalties, and management fees paid to non-residents
• Mining and Petroleum Taxes — sector-specific taxation for resource projects, administered in conjunction with the relevant resource agencies

Tax rates and thresholds are set by legislation, principally the Income Tax Act 1959 and the Goods and Services Tax Act 2003. Investors should refer to the Tax Framework section for a structured overview of PNG’s tax environment.

Tax Registration for Foreign Entities

Foreign companies establishing operations in Papua New Guinea are required to register with the IRC and obtain a Taxpayer Identification Number (TIN). GST registration is mandatory for entities exceeding the prescribed turnover threshold. Registration should be completed early in the establishment process, typically alongside IPA certification and company incorporation.

Taxpayer Services and Rulings

The IRC provides taxpayer services including binding and non-binding rulings on the tax treatment of proposed transactions. For significant investments, advance rulings can provide certainty on the application of tax law to specific arrangements. The IRC also publishes practice statements and interpretive guidance on common tax issues.

Dispute Resolution

Taxpayers who disagree with an IRC assessment may lodge a formal objection. The objection is reviewed internally, and if unresolved, the taxpayer may appeal to the National Court. PNG’s dispute resolution framework for tax matters follows a structured administrative review process before judicial proceedings become available.

Tax Clearance Certificates

Tax clearance certificates are issued by the IRC to confirm that an entity or individual is compliant with their PNG tax obligations. These certificates are commonly required for government contract tenders, foreign exchange transactions through the Bank of Papua New Guinea, and certain regulatory approvals.

Investors requiring guidance on PNG’s tax obligations as they relate to a specific investment structure can contact InvestPNG for referral to the appropriate advisory resources.