The Internal Revenue Commission (IRC) of Papua New Guinea (PNG) is advising employers, businesses, and the public that the transitional period for implementation of the income Tax Act 2025 and the Tax Administration Act 2017 has been extended to the 30th of June, 2026.

According to the IRC, the is due to the consideration and passage of the relevant amendment bills during the May sitting of parliament, and the issuance of the Income Tax Regulation and the Tax Administration Regulation.

During the extended transition period, the IRC will continue to apply a fair, practical, and reasonable compliance approach. Employers and taxpayers who act in good faith and make genuine efforts comply with the new legislation will not be unfairly penalize.

 “The IRC will continue to issue guidance and engage with business chambers, professional bodies, and payroll providers to support readiness and address implementation issues,” the IRC stated.

 Further updates will be communicated through the IRC circulars, guidance notes, and the IRC website.