PNG TAX
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Join Date: Jun 2005
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PNG TAX
Say if someone got offered a contract working in PNG paying the equilivant to$100,000 AUS but pay PNG tax so no tax benifit in AUS. How much tax do you pay?? and what do you get in your pocket each week??
Any other traps about been paid in PNG??
Cheers
Any other traps about been paid in PNG??
Cheers
Join Date: Aug 2007
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This is how it works png and australia has a double tax agreement. So under the new system if you pay tax in png it is counted as a tax credit and if it is more then what you would pay in aussie then you have no more tax to pay here if it is less they hit you up for more(yes I have a bill this year). The png tax system is harsh and you are much better off being paid in Aussie at least you get something for it(medicare ect..). If you are not paying tax here and become a non resident then you lose for up to 2 years access to social sercurity system, eg medicare,child care rebate,dole, in some cases the old age pension and state schooling and so on.
Last edited by cnic; 25th Oct 2009 at 01:26.
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Went through this exercise some time ago. Tax in PNG is high compared to Aussie
Example, on a salary of around $AUD120,000 taxed in PNG leaves you with the same amount in your pocket as if your salary was about $101,000 paid by an Aussie company.
There is also no compulsory superannuation paid by the employee so you are then down another 9%.
But, there is the ability to salary sacrifice some of your money into super that after a certain time will lower the tax on that amount.
Example, on a salary of around $AUD120,000 taxed in PNG leaves you with the same amount in your pocket as if your salary was about $101,000 paid by an Aussie company.
There is also no compulsory superannuation paid by the employee so you are then down another 9%.
But, there is the ability to salary sacrifice some of your money into super that after a certain time will lower the tax on that amount.
Join Date: Jan 2004
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Do a search on png tax rates DO NOT use the PNG IRC website as it is the old tax rate, look at the Price Waterhouse web site.
100000 you would pay about 37% the tax rate is scaled 42% is over 250000 Kina
100000 you would pay about 37% the tax rate is scaled 42% is over 250000 Kina
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This is right if you are a resident of png and give up your australian residence (hence you have no tax to pay in australia but you lose access to australian benefits) If you remain an australian resident you can not be a png resident too so you pay tax from the first kina you earn, you do not get the first 7000 tax free. As a non residence you have to pay the 22%from the first kina you earn, hence the huge tax wack. It is the same as the australian system. We were told if you leave your family here and have a house that you return to the tax dept. now considers you a resident and it is very hard to get out of paying australian tax does anyone else have different advice?
Join Date: Mar 2005
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Shaftmaster
I'd suggest that you find a good accountant that specialises in the area of Australian's earning foreign income. Personally I've used and would recommend Duesburys Accountants.
It's been a few years for me & things may have changed, but it used to be something like... If you were an Australian citizen living/working overseas and getting paid foreign currency then you are a non resident for Australian tax purposes & therefore don't pay tax in Australia (lodge a nil return)....
If you can wrangle it so that you aren't taxed in the overseas country, and you are paid in foreign currency directly into an Australian account then you are still a non resident and you've gotten away without paying tax.
How would I know??
But don't take my word for it...Pilots are great at flying planes, but absolutely ****e at making money.
I'd suggest that you find a good accountant that specialises in the area of Australian's earning foreign income. Personally I've used and would recommend Duesburys Accountants.
It's been a few years for me & things may have changed, but it used to be something like... If you were an Australian citizen living/working overseas and getting paid foreign currency then you are a non resident for Australian tax purposes & therefore don't pay tax in Australia (lodge a nil return)....
If you can wrangle it so that you aren't taxed in the overseas country, and you are paid in foreign currency directly into an Australian account then you are still a non resident and you've gotten away without paying tax.
How would I know??
But don't take my word for it...Pilots are great at flying planes, but absolutely ****e at making money.
Join Date: Nov 2009
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Job Offer
If I was offered job in Port Moresby with a base salary $80000.00 AUD per year, with company car including Fuel, Accommodation owned by employer,Gas and TV rental charges paid by employer, also 70% of electricity is paid by employer, one round trip home leave economy airline ticket per year for yourself, spouse and accompanying children under 18 years of age( I have no children and no dependent), The company will pay a K10,000 relocation allowances to permit me to purchase personal household effects,private medical facilities provided of which the medical insurance reimburses 80% of my claimed expenses, The domestic allowance for house keeper is K9,200, 6 weeks annual leave, 2 Club Memberships.
I would like to know what will be my fortnight net pay (non-resident) given the salary pay and benefits and also I would like to know what is the salary scale for Port Moresby for expats. Also what other benefits are offered.
I would like to know what will be my fortnight net pay (non-resident) given the salary pay and benefits and also I would like to know what is the salary scale for Port Moresby for expats. Also what other benefits are offered.
