PNG Government Increases Overseas Remittance Limit to K1.5 Million, Introduces Major Tax Reliefs
The Papua New Guinea (PNG) Government has raised the overseas remittance limit to K1.5 million, effective January 1, in a move aimed at easing compliance burdens and supporting businesses. Internal Revenue Commissioner Sam Koim announced the increase, which replaces the previous K500,000 limit, as part of comprehensive tax reforms outlined in the 2025 National Budget.
![]() |
Sam Koim |
Koim explained that taxpayers remitting below the K1.5 million threshold annually to non-tax haven countries will no longer require a tax clearance certificate (TCC). “This reform offers significant relief for businesses, particularly small and medium enterprises (SMEs), by reducing compliance costs and streamlining smaller international transactions,” he stated. The measure is one of 10 major interventions introduced by the Marape Government to support households, businesses, and key economic sectors.
Among these reforms, the Government has zero-rated goods and services tax (GST) on 13 essential items, including rice, canned fish, cooking oil, and soap, to help mitigate rising inflation. This policy, which will take effect in the second half of 2025, is expected to lower living costs for households across the nation. Additionally, small businesses with annual turnovers below K1.5 million will now file GST returns quarterly rather than monthly.
The budget also includes enhanced incentives for first-time homebuyers, with the stamp duty exemption threshold increased from K500,000 to K700,000, effective January 1. The changes aim to address rising housing costs, making homeownership more accessible for Papua New Guineans. Further reforms include full tax exemptions on superannuation withdrawals for individuals with 15 years of service and tax relief for retirement savings accounts.
Other measures announced include tax exemptions for judges’ pensions, phased reductions in corporate income tax rates for banks starting January 1, and the continuation of the K20,000 income tax-free threshold for workers. Koim emphasized that these reforms represent an unprecedented K500 million in tax reliefs, underscoring the Government’s commitment to mitigating economic challenges.
“These measures are designed to support households, businesses, and key sectors of the economy during these challenging times,” Koim said, adding that the reforms will strengthen economic resilience and improve livelihoods across the country.
Also read
Post a Comment