planning and registering your business in png keynote presentation
TRANSCRIPT
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Planning and Registering your business in PNG
16 May 2016
Peter Maletz
Why do business in PNG?
Opportunities are plentiful Limited expat suppliers Cheap labour Technology is improving Oil & Gas sector is red hot
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Doing business in PNG
3 forms of business structure Foreign Contractor Branch of an overseas company Local PNG Company
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Foreign Contractor
Prescribed contract Withholding tax 12% Discretion to assess actual taxable income at
48%
A simpler option, but not for everyone
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Branch of an Overseas Company
Tax rate 48.5% Audited accounts – with exemptions
Not too attractive? Used correctly, this can be a very effective cross border business structure
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Local PNG Company
Tax rate 30% Dividend withholding tax 17% Required to be audited Requires a local ordinarily resident PNG director
Provides a local presence and allows you to capitalise on all associated benefits
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Exchange Controls
Administered by the Bank of Papua New Guinea Authorised dealers approve transactions (ie
Banks) Tax Clearance Certification required for
>K200,000 per calendar year.
Be aware of controls in place and take action to minimise their impact
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Personal Property Securities Register
Operative from 9 May 2016 Similar to Australia Register title to business assets
Seek advice to avoid risk of loss
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Bust a Myth
MYTH: It’s too dangerous to do business in PNG
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FACT: Follow the well beaten expat path
MYTH: The red tape is impossible!
FACT: Use advisers who know the system
MYTH: You must have local ownership
FACT: The reality is, foreign is fine
DisclaimersThis document contains information in summary form and discusses proposed but not legislated rules and is therefore intended for general guidance only.
It is not intended to be a substitute for detailed research or the exercise of professional judgement. It does not purport to be comprehensive or to render professional advice. The reader should not act on the basis of any matter contained in this publication without first obtaining specific professional advice.
We believe that the statements made by us in this document are accurate but no warranty of accuracy or reliability is given. Our conclusions are based on interpretations of accounting standards and other relevant professional pronouncements and legislation current as at the date of this document. Should the interpretations, accounting standards, other relevant professional pronouncements or legislation change, our conclusions may not be valid.
© Hanrick Curran, 2016
All rights reserved
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