WorldTax Compareโ† All Comparisons

Japan vs Papua New Guinea
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฏ๐Ÿ‡ต Japan
vs
๐Ÿ‡ต๐Ÿ‡ฌ Papua New Guinea
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
5โ€“45%
Basic deduction increase for low earners
No change
22โ€“42%
42% top; resource boom affecting distribution
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
8โ€“10%
No rate change; digital services tax under review
No change
10%
GST 10% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
~30.62%
Global Minimum Tax applies to large MNCs
No change
30%
30%; new LNG projects fiscal terms negotiation
No change
Capital Gains Tax
Capital Gains Tax
20.315%
Expanded NISA (tax-free investment) ongoing
No change
17%
17% non-residents
No change
Social Security & Payroll
Social Security / Payroll
~28.5%
Coverage expansion to part-time workers ongoing
No change
~12.5%
Superannuation fund growth; coverage limited to formal
No change
State, Regional & Local Taxes

๐Ÿ‡ฏ๐Ÿ‡ต Japan โ€” Prefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ‘็จŽ) at a flat 10% on top of national income tax โ€” 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.

๐Ÿ‡ต๐Ÿ‡ฌ Papua New Guinea โ€” Provincial & Local Government Taxes

Papua New Guinea's 22 provinces and the National Capital District levy their own provincial income taxes on certain income types, business licence fees, and sundry local charges. The Internal Revenue Commission (IRC) administers national taxes. PNG's economy is dominated by extractive industries (LNG, gold, copper) under fiscal resource contracts. The LNG sector has transformed government revenues. Significant informal economy and subsistence agriculture outside the formal tax base. A GST at 10% applies broadly.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Japan vs Papua New Guinea: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฏ๐Ÿ‡ต Japan has a higher top income tax rate (5โ€“45% vs 22โ€“42%). ๐Ÿ‡ต๐Ÿ‡ฌ Papua New Guinea is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Both countries have comparable consumption tax rates (8โ€“10% vs 10%).

๐Ÿข Corporate Tax: ๐Ÿ‡ต๐Ÿ‡ฌ Papua New Guinea offers a lower corporate rate (30% vs 30.62%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ต๐Ÿ‡ฌ Papua New Guinea taxes investment gains at a lower rate (17% vs 20.315%), benefiting investors.

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