I am doing a Case study on the impacts of tax on Multinational companies
General tax framework for multinational corporations in PNG includes:
1. Corporate Income Tax
Standard corporate income tax rate in PNG is 30%. For companies involved in petroleum and gas projects, the rate can be higher, reflecting the significant profits these resources can generate.
2. Goods and Services Tax (GST): A GST of 10% is levied on most goods and services in Papua New Guinea.
3. Additional Profits Tax: Companies, especially in the mining and petroleum sectors, may be subject to additional profits taxes, which are designed to capture greater economic rent when profits are high.
4. Withholding Taxes: Dividends, interest, and royalties paid to non-residents are subject to withholding taxes, the rates of which vary depending on the type of income and the recipient's country of residence, particularly if there is a tax treaty in place.
5. Resource-related Charges: Companies in the extractive industries may also face various royalties, levies, and other charges specific to the sector.
6. Customs Duties: Import duties on various goods can also affect multinational companies, especially those that rely heavily on imported materials.
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