• 1. Freight tax

Freight tax

Income tax: 48% of taxable income, which is considered to be either 5% of all coastal and outward gross earnings under voyage charter (= 2.4%) or 25% of the gross contract value under bareboat charter, if the vessel is used wholly or mainly within Papua New Guinea (=12%).

Exemption Agreements 
Residence of the following countries are granted exemption from income tax on outward earnings. The agreements do not allow for exemption on earrings derived from coastal operations. Exemption from income tax on bareboat hire is available where indicated. 

Double taxation agreements
Country Date of entry
into force
Date of effect
Australia   01/01/1991
Canada 1   01/01/1990
China 2   01/01/1995
Fiji   01/01/1999
Indonesia 05/03/2014 01/01/2015
Korea, Republic of 1   01/01/1999
Malaysia   01/01/2000
New Zealand 21/01/2014 01/03/2014 Withholding
01/01/2015 Other
Singapore 1   01/01/1993
United Kingdom   01/01/1992
Double taxation agreements which are signed but not ratified
Reciprocal Agreements for International Shipping Operations
New Zealand    
1. The treaty exempts income tax on bareboat hire.
2. The treaty does not apply to residents of Hong Kong, SAR; Macao, SAR or the province of Taiwan.


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