18 January 2022
According to recent reports, the National Parliament of Papua New Guinea passed the Income Tax (2022 Budget)(Amendment) Bill 2021 and other amendment legislation for the 2022 Budget on 30 November 2021. One of the key measures provides for the introduction of a new Market Concentration Levy (or Dominant Industry Player Levy), which is levied on financial institutions and licensed telecommunication companies that hold 40% market share in their respective sectors. For financial institutions, the levy is equal to PGK 190 million per year commencing from 2022, and for telecommunication companies, the levy is equal to PGK 95 million per year.
Another important measure provides that the tax credit for prescribed infrastructure development for qualifying taxpayers engaged in mining, petroleum, or gas operations (0.75%), primary production (agriculture) (1.50%); or tourism (1.50%) is increased so that that the credit is equal to 2.0% for all such qualifying taxpayers. Further, new provisions are introduced providing that excess (unused) expenditure for credit purposes may be carried forward up to 7 years, with any unutilized credits as of 31 December 2021 allowed to be carried forward 7 years from 2022. This is in line with the allowed loss carry forward period.
Other measures include:
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.