Papua New Guinea

Legal Framework

PNG is in early stages of digital transformation with the Digital Government Act 2022 providing a legal framework for digital governance. A National AI Adoption Framework is in final stages of development by the Department of ICT. The ICT Act is under review to modernize the legal framework. No AI-specific legislation, no DAO recognition, and no digital asset regulation exists. The country launched its first AI deployment (visa processing) in March 2025 and is developing a National Data Protection and Governance Policy. SevisPass digital ID system is in pilot phase (2025).

Key Laws & Regulations

• ◆Digital Government Act 2022
• ◆Digital Transformation Policy 2020
• ◆Digital Government Plan 2023-2027
• ◆National AI Adoption Framework (in development)
• ◆National Cyber Security Strategy
• ◆ICT Act (under review)

Business Formation

Limited Company is the typical entity. Branch offices common for foreign entities. Investment Promotion Authority certification required for companies 50% or more foreign-owned. No minimum capital requirement. Some activities reserved for PNG citizens.

Tax Implications

Corporate tax rate 30% for residents, 48% for non-residents. Commercial banks taxed at 45%. GST at 10%. No capital gains tax. Tax losses can be carried forward 20 years. 10-year tax exemption for businesses in specified rural development areas. Double deduction for export promotion expenses.