Some PNG Investment Incentives are as follows –
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. 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, confectionery, dairy products, glass products, paper products, wooden furniture components and doors, and must be exported by the manufacturer.
3. 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