1. 10 year exemption from income tax for new businesses in designated rural

     development areas

      - There are 41 rural development areas for example Bogia in Madang Province and

        Wabag in Enga Province.

      - The venture must not be dependant on natural resources for its development

        (areas covered by Petroleum Development Licenses  or Special Mining Leases are

          excluded)

      - Prescribed industries include agriculture, construction, hotels, restaurants and

        manufacturing.

2. 5 year tax exemption for pioneer industries

      - Must bring beneficial economic activities to the country

      - Or introduce a new form of industry

3. Export Incentives - 7 year tax exemption period  

      - Export profits for the first 4 years are exempt

      - Profits of any increase in export sales over the average for the first three years

        are also exempt

      - Exports must be new manufactured products, including canned foods, confectionary,

        dairy products, glass products, paper products, wooden furniture components and

        doors, and must be exported by the manufacturer.

4.  Accelerated Depreciation 100% deduction available for the capital cost of:

      - Industrial plants not previously used in PNG, with an effective life exceeding 5 years

        and used in a manufacturing process (includes buildings and structural

        improvements for the housing of manufacturing plant, component parts and the

        finished product).

      - Plant or articles used directly for the purposes of agricultural production

        (includes vehicles)

      - Plant or articles used by residents solely of commercial fishing purposes

      - Boats or ships (including ancillary equipment) used by accredited scuba diving or

        snorkeling tour operators