Industrial Policy & Trade Monitor· 2662 actions· ✨ 89 recent

Papua New Guinea's Parliament passed the Income Tax Act 2025 (Act No. 11 of 2025) on 20 March 2025, replacing the Income Tax Act 1959 in its entirety and taking effect from 1 January 2026. The Act introduces PNG's first-ever capital gains tax (CGT) at a flat 15% rate on gains from the direct or indirect disposal of interests in extractive assets (mining tenements, petroleum licences, and associated infrastructure). An offshore indirect transfer rule closes the longstanding "Double Dutch" structure used to transfer PNG mineral licences via overseas holding-company share sales without PNG tax exposure: any transaction resulting in a 10%-or-greater change in beneficial ownership of a PNG extractive licensee triggers a notification obligation and deemed disposal, crystallising CGT liability for the offshore transferor. No sector carve-out exists; KPMG and PwC analyses confirm CGT applies uniformly to all mining, oil, and gas disposals.

Papua New Guinea's National Parliament passed the National Petroleum Authority Act 2025 on 12 March 2025 (vote 84–0), establishing the National Petroleum Authority (NPA) as a new statutory regulator replacing the Department of Petroleum and Energy. The companion Oil and Gas (Amendment) Act 2025 was passed the same week, realigning the Oil and Gas Act 1998 licensing framework with NPA oversight. Both Acts commenced on 9 April 2025 via Notice in the National Gazette. A new 0.5% gross-revenue levy on crude oil, natural gas, LNG, condensates, and LPG applies to all Petroleum Production Licence holders, directly affecting ExxonMobil's PNG LNG (8.3 Mtpa), TotalEnergies' Papua LNG (4 Mtpa, FID expected 2026–27), and Santos' legacy Oil Search holdings.

The Government of Papua New Guinea released the Mining Bill 2025 for public consultation on 25 February 2025, with submissions due 4 April 2025, targeting Cabinet endorsement and parliamentary tabling by PNG's 50th Independence anniversary on 16 September 2025. The Bill replaces the Mining Act 1992 and formalises a "Take Back PNG" resource-nationalist framework: the State gains a right to acquire up to 30% equity in any mining project on deferred-payment terms, royalties are tiered at 5% gross revenue (where State takes equity) or 10% gross revenue (where it does not), and mining-lease holders must offer at least 50% of production to domestic smelters/refineries where such capacity exists. Projects at Wafi-Golpu and Frieda River are grandfathered under the 1992 Act.