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Income Tax (International Agreements) Act 1987

No. 999 of 1987.

Income Tax (International Agreements) Act 1987.
Certified on: / /20 .


INDEPENDENT STATE OF PAPUA NEW GUINEA.

No. of 1987.

Income Tax (International Agreements) Act 1987.

ARRANGEMENT OF SECTIONS.

INDEPENDENT STATE OF PAPUA NEW GUINEA.

AN ACT

entitled

Income Tax (International Agreements) Act 1987,

Being an Act to give the force of law to certain Agreements with respect to taxes on income, and for related purposes, to be incorporated and read as one with the Income Tax Act 1959,

MADE by the National Parliament to come into operation on 1 January 1988.

  1. INTERPRETATION.

(1) In this Act, unless the contrary intention appears–

“agreement” means an agreement a copy of which is set out in a Schedule to this Act;

[1]“the Australian agreement” means the Agreement between Australia and the Independent State of Papua New Guinea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 2;

“the Canadian agreement” means the Agreement between the Independent State of Papua New Guinea and the Government of Canada for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 1;

[2]“the China agreement” means the agreement between the Government of the Independent State of Papua New Guinea and the Government of the Peoples’ Republic of China for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 6;

[3]“the Germany agreement” “the Germany agreement” means the agreement between the Government of the Independent State of Papua New Guinea and the Government of the Federal Republic of Germany for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 7;

[4]“the Korean Agreement” means the agreement between the Government of the Independent State of Papua New Guinea and the Government of the Republic of Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 8;

[5]“the Fijian agreement” means the Agreement between the Government of the Independent State of Papua New Guinea and the Government of the Republic of Fiji for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 9;

[6]“the Malaysian agreement” means the Agreement between the Government of the Independent State of Papua New Guinea and the Government of Malaysia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 5;

“Papua New Guinea Tax” means any tax levied by Papua New Guinea that is tax to which an agreement applies;

[7]“the Singaporean agreement” means the Agreement between the Government of the Republic of Singapore and the Independent State of Papua New Guinea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 3;

[8]“the United Kingdom” means the United Kingdom of Great Britain and Northern Ireland;

[9]“the United Kingdom agreement” means the Agreement between the Government of the United Kingdom and the Independent State of Papua New Guinea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 4;

“calendar year” means a year commencing 1 January;

“foreign tax” means tax, other than Papua New Guinea tax, which is the subject of an agreement;

“the Income Tax Act” means the Income Tax Act 1959, as amended.

Note In several cases, the words “sea-bed”, “sea bed”, “sub-soil” and “forgo” have been changed to “seabed”, “subsoil” and “forego” to achieve consistency in the legislation.

(2) For the purposes of this Act and the Income Tax Act, a reference in an agreement to profits of an activity or business shall, in relation to Papua New Guinea Tax, be read, where the context so permits, as a reference to taxable income derived from that activity or business.

(3) Where a beneficiary in a trust estate is presently entitled to income of the trust estate, that income shall, for the purposes of this Act, be deemed to be an amount of income derived by the person.

  1. INCORPORATION.

(1) Subject to Subsection (2), the Income Tax Act is incorporated and shall be read as one with this Act.

(2) The provisions of this Act have effect notwithstanding anything inconsistent with those provisions contained in the Income Tax Act (other than Section 219(3) or 361 of that Act) or in an Act imposing Papua New Guinea Tax.

  1. AGREEMENT WITH CANADA.

[10]Subject to this Act, on and after the date of entry into force of the Canadian agreement, the provisions of the Canadian agreement so far as those provisions affect Papua New Guinea tax, have the force of law according to their tenor.

3A. AGREEMENT WITH AUSTRALIA.

[11]Subject to this Act, on and after the date of entry into force of the Australian agreement, the provisions of the Australian agreement so far as those provisions affect Papua New Guinea tax, have the force of law according to their tenor.

3B. AGREEMENT WITH SINGAPORE.

[12]Subject to this Act, on and after the date of entry into force of the Singaporean agreement, the provisions of the agreement so far as those provisions affect Papua New Guinea tax, have force of law according to their tenor.

3C. AGREEMENT WITH THE UNITED KINGDOM.

[13]Subject to this Act, on and after the date of entry into force of the United Kingdom agreement, the provisions of the agreement so far as those provisions affect Papua New Guinea tax, have the force of law according to their tenor.

3D. AGREEMENT WITH MALAYSIA.

[14]Subject to this Act, on and after the date of entry into force of the Malaysian agreement, the provisions of the agreement so far as those provisions affect Papua New Guinea tax, have the force of law according to their tenor.

3E. AGREEMENT WITH CHINA.

[15]Subject to this Act, on and after the date of entry into force of the China agreement, the provisions of the agreement so far as those provisions affect Papua New Guinea tax, have the force of law according to their tenor.

3F. AGREEMENT WITH GERMANY.

[16]Subject to this Act, on and after the date of entry into force of the Germany agreement, the provisions of the agreement so far as those provisions affect Papua New Guinea tax, have the force of law according to their tenor.

3G. AGREEMENT WITH KOREA.

[17]Subject to this Act, on and after the date of entry into force of the Korean Agreement, the provisions of the agreement so far as those provisions affect Papua New Guinea tax, have the force of law according to their tenor.

3H. AGREEMENT WITH FIJI.

[18]Subject to this Act, on and after the date of entry into force of the Fijian agreement, the provisions of the agreement so far as those provisions affect Papua New Guinea tax, have the force of law according to their tenor.

  1. SOURCE OF DIVIDENDS.

(1) Where a company is not a resident of Papua New Guinea but, for the purposes of a law of a country with which, or with the Government of which, an agreement has been made (being a law which imposes foreign tax), is resident in that other country, a dividend paid by the company shall, for the purposes of the agreement, be deemed to be derived from a source in that country.

(2) Subsection (1) does not limit the operation of a provision of an agreement by virtue of which a dividend is deemed to be derived from a source outside Papua New Guinea.

  1. REGULATIONS.

The Head of State, acting on advice, may make Regulations, not inconsistent with this Act, prescribing all matters that by this Act are required or permitted to be prescribed, or that are necessary or convenient to be prescribed, for giving effect to this Act.

SCHEDULE 1 – AGREEMENT BETWEEN CANADA AND PAPUA NEW GUINEA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT OF TAXES ON INCOME.

AGREEMENT

SCHEDULE 2 – [19]AGREEMENT BETWEEN AUSTRALIA AND THE INDEPENDENT STATE OF PAUA NEW GUINEA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.

AGREEMENT

SCHEDULE 3 – AGREEMENT BETWEEN THE GOVERNMENT OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA AND THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.

AGREEMENT

SCHEDULE 4 – [20]CONVENTION BETWEEN THE GOVERNMENT OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA AND THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND.

CONVENTION

SCHEDULE 5 – [21]AGREEMENT BETWEEN THE GOVERNMENT OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA AND THE GOVERNMENT OF MALAYSIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.

AGREEMENT

SCHEDULE 6 – AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.

AGREEMENT

SCHEDULE 7 – AGREEMENT BETWEEN THE INDEPENDENT STATE OF PAPUA NEW GUINEA AND THE FEDERAL REPUBLIC OF GERMANY FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND CAPITAL.

AGREEMENT

SCHEDULE 8 – AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF KOREA AND INDEPENDENT STATE OF PAPUA NEW GUINEA FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME.

AGREEMENT

SCHEDULE 9 – AGREEMENT BETWEEN THE GOVERNMENT OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA AND THE GOVERNMENT OF THE REPUBLIC OF FIJI FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME.

AGREEMENT


Office of Legislative Counsel, PNG


  1. [1]Section 1(1) (definition of “the Australian agreement”) inserted by Income Tax (International Agreements) (Amendment) Act 1989 (No. 28 of 1989), s1.
  2. [2]Section 1(1) (definition of “the China agreement”) inserted by Income Tax (International Agreements) (Amendment) Act 1994 (No. 37 of 1994), s1.
  3. [3]Section 1(1) (definition of “the Germany agreement”) inserted by Income Tax (International Agreements) (Amendment) Act 1995 (No. 47 of 1995), s1.
  4. [4]Section 1(1) (definition of “the Korean agreement”) inserted by Income Tax (International Agreements) (Amendment) Act 1998 (No. 12 of 1998), s1.
  5. [5]Section 1(1) (definition of “the Fijian agreement”) inserted by Income Tax (International Agreements) (Amendment No. 2) Act 1998 (No. 47 of 1998), s1.
  6. [6]Section 1(1) (definition of “the Malaysian agreement”) inserted by Income Tax (International Agreements) (Amendment) Act 1993 (No. 46 of 1993), s1.
  7. [7]Section 1 (definition of “the Singaporean agreement”) inserted by Income Tax (International Agreements) (Amendment) Act 1991 (No. 39 of 1991), s1.
  8. [8]Section 1(1) (definition of “the United Kingdom”) inserted by Income Tax (International Agreements) (Amendment) Act 1991 (No. 39 of 1991), s1.
  9. [9]Section 1(1) (definition of “the United Kingdom agreement”) inserted by Income Tax (International Agreements) (Amendment) Act 1991 (No. 39 of 1991), s1.
  10. [10]Section 3 repealed and replaced by Income Tax (International Agreements) (Amendment) Act 1989 (No. 28 of 1989), s2.
  11. [11]Section 3A inserted by Income Tax (International Agreements) (Amendment) Act 1989 (No. 28 of 1989), s3.
  12. [12]Section 3B inserted by Income Tax (International Agreements) (Amendment) Act 1991 (No. 39 of 1991), s2.
  13. [13]Section 3C inserted by Income Tax (International Agreements) (Amendment) Act 1991 (No. 39 of 1991), s3.
  14. [14]Section 3D inserted by Income Tax (International Agreements) (Amendment) Act 1993 (No. 46 of 1993), s2.
  15. [15]Section 3E inserted by Income Tax (International Agreements) (Amendment) Act 1994 (No. 37 of 1994), s2.
  16. [16]Section 3F inserted by Income Tax (International Agreements) (Amendment) Act 1995 (No. 47 of 1995), s2.
  17. [17]Section 3G inserted by Income Tax (International Agreements) (Amendment) Act 1998 (No. 12 of 1998), s2.
  18. [18]Section 3H inserted by Income Tax (International Agreements) (Amendment No. 2) Act 1998 (No. 47 of 1998), s2.
  19. [19]Schedule 2 inserted by Income Tax (International Agreements) (Amendment) Act 1989 (No. 28 of 1989), s4.
  20. [20]Schedule 4 inserted by Income Tax (International Agreements) (Amendment) Act 1991 (No. 39 of 1991), s4.
  21. [21]Schedule 5 inserted by Income Tax (International Agreements) (Amendment) Act 1993 (No. 46 of 1993), s3; repealed and replaced by Income Tax (International Agreements) (Amendment) Act 1994 (No. 37 of 1994), s3.


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