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PNG’s Unusual Provisions for Handling Employee Death

Papua New Guinea (PNG) has established unique provisions that set it apart from other countries when handling employee death. According to the Employment Act (Chapter 373), employers in PNG are responsible for:

  • Repatriating the deceased and/or their family members
  • Covering the costs of a coffin

Overtime Pay

In addition to these unusual provisions, PNG has specific rules regarding overtime pay. Employers must:

  • Pay employees at specified rates
  • Provide time off in lieu of overtime work

Relevant Legislation

The Employment Act (Chapter 373) and the Employment of Non-Citizens Act (Chapter 374) govern employee-employer relationships in PNG. The Workers Compensation Act 1978 also applies to employees who are injured on the job.

Additional Information

For more information, employers can visit the Employers Federation of PNG website at efpng.org.pg. KPMG, a leading professional services firm, offers payroll services that can help employers navigate these complex regulations.

Corporate Income Tax Compliance

PNG has specific rules regarding corporate income tax compliance. The tax year is from January 1 to December 31, and companies must file their returns by March 31 of the following year. KPMG can provide guidance on corporate income tax compliance in PNG.

Personal Income and Salaries Tax

Individual taxpayers are subject to personal income and salaries tax on their worldwide income. Non-residents are taxed only on income sourced from PNG. The tax year is also January 1 to December 31, and individuals must file their returns by August 31 of the following year.

Double Tax Agreements

PNG has double tax agreements (DTAs) with several countries, including:

  • Australia
  • Canada
  • Singapore

These agreements aim to reduce taxation on cross-border transactions and prevent double taxation.

Conclusion

In this article, we explored PNG’s unique provisions for handling employee death, overtime pay regulations, relevant legislation, corporate income tax compliance, personal income and salaries tax, and double tax agreements. Whether you’re an employer or an individual taxpayer, it’s essential to understand these rules to ensure compliance with PNG tax laws.