On 28 November 2018, Papua New Guinea's Minister for Treasury delivered the National Budget for 2020 in parliament. Some of the main tax-related measures of the budget taxation bills include:
Further to the above, a provision is also included that no loss incurred on or before 31 December 2018 is deductible, that, under the provisions in force prior to 1 January 2019, would have been deductible from income derived in the year ended 31 December 2018 or a later year. This is in relation to changes in the loss carryforward rules from 1 December that limit loss carryforward to 7 years in general and 20 years for resource companies. As worded in the draft bill, the provision would effectively disallow the deduction of any losses incurred before 1 January 2019 that would be deductible under prior rules, which is reportedly not the intent of the Internal Revenue Commission and is expected to be amended further before the bill is approved.
Click the following link for the 2020 budget webpage.
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