TAX AMNESTY SCHEME
The Commissioner General of Internal Revenue Commission(IRC) has notified a temporary relief to businesses in PNG.
Who is covered?
All persons who are liable to file returns and pay taxes but have failed to do so including – Individuals, Partnerships, Trust (Private and Public), Joint Ventures -incorporated & unincorporated, Charitable Institutions, Companies, Landowner Companies, Superannuation Funds, Government Departments, etc.
What tax types are covered?
- Income Tax
- Salary or Wages Withholding Tax
- Business Income Payment Tax
- Royalty Withholding Tax
- Foreign Contractor Withholding Tax
- Dividend Withholding Tax
- Interest Withholding Tax
- Non Resident Insurer Tax
- Management Fee Withholding Tax
- Other Withholding Taxes
What is duration of the Scheme?
1 November to 31 December, 2017
What does the amnesty cover?
Late lodgement and late payment penalties, due on outstanding tax returns/payments,
What tax periods are covered?
All tax periods lodged within the amnesty period are allowed provided the taxpayer remits all the taxes due and has no tax outstanding on 31 December 2017
What is not covered?
- Existing payment arrangements except where the taxpayer opts in for amnesty and pays entire base tax.
- Existing penalties in relation to tax returns already lodged or taxes already paid are not expected to be covered.
NEW TAX CLEARANCE PROCESS
IRC has notified new documentation and compliance requirements for tax clearance application
What overseas remittance/ transactions require tax clearance?
- All remittances to following countries -Bahamas, Bermuda, British Channel Islands, Gibraltar, British Virgin Islands, Grenada, Hong Kong, The Isle of Man, Liberia, Liechtenstein, Nauru, Netherlands Antilles, Norfolk Islands, Panama, Switzerland, Tonga and Vanuatu
- Overseas remittances exceeding K200,000 in a year, to counties other than specified above towards-Capital Funds (Savings) /Branch Profits / Dividends /Royalties and other service payments /Non trade Prescribed Contract payments /Sale proceeds /Transfer of listed securities to overseas register /Transfer of funds under Court Order / Loan repayments /Prospective payments on Routine Service Contracts /Credit or Debit card overseas use
What documents need to be provided?
Refer to Appendix A for supporting documents to be lodged along with the standard tax clearance application (FORM TCC). This list is not exhaustive and IRC may require further details.
Are there any other requirements?
Applicant should satisfy following criteria before applying-
- Should be tax registered i.e. have a TIN
- All tax lodgements must be up to date
- Should have no outstanding taxes
- FORM TCC must be lodged at least 3 weeks prior to the estimated date of payment/ expiry of earlier certificate
How long the certificate will be issue for?
Generally 1 year however in case of restricted blanket TCC only 6 months