Tax

Papua New Guinea is in the process of significant changes following recent amendments to the tax code, which include new rules for the taxation of extractive industries, while proposed reforms include the introduction of a capital gains tax and the rewriting of the Income Tax Act. The 2020 budget is focused mainly on reforming the revenue administration system. It also includes a limited number of changes to the tax regime, including introducing a new tax system for small and medium-sized enterprises, reducing the permitted debt-to-equity ratio for resources companies and amending the tax dispute resolution process. This chapter contains a viewpoint from Jonathan Seeto, Managing Partner, PwC Papua New Guinea.