31/08/2023
TAX RELIEF TO MICRO and SMALL BUSINESSES (SOLE TRADERS)
The Marape/Rosso Government offered much needed tax relief to small businesses, especially sole traders with the introduction of the Small Business Tax (SBT) regime. This was one of the first initiatives of the Marape Government immediately after taking office in 2019, designed to ease compliance burdens and pave the way for budding businesses growth and success. The Internal Revenue Commission is administering the SBT now. 📈💪
Here's what you need to know:
1️⃣ Cash Base Accounting: We understand that managing finances can be challenging. That's why we've introduced cash base accounting, simplifying your bookkeeping by allowing you to record income and expenses when they are received or paid. Say goodbye to complex accrual-based accounting!
2️⃣ Reduced Turnover Tax: We believe in rewarding your hard work. The Small Business Tax Regime offers reduced turnover tax rates, putting more money back into your pocket. This means you can reinvest in your business, expand your offerings, or even hire new talent. The following taxes apply:
1. Micro business - annual turnover threshold of up to K60,000, Tax -K250 flat or fixed tax paid annually
2. Small business - annual turnover threshold is more than K60,000 but less than K250,000, Tax - K62.50 quarterly plus additional 2% on quarterly turnover that exceeds K15,000
3️⃣ Simplified tax forms: We value your time and want to spare you unnecessary administrative tasks. With the new regime, you'll enjoy reduced paperwork, allowing you to focus on what you do best – running your business! 📅⏰
4 Alternative methods of making tax payments: We make paying tax easy by offering a range of payment methods that suits your business needs, enabling you to transact without leaving the comfort of your home. Click myirc: https://irc.gov.pg/
We're committed to supporting your growth and ensuring a thriving small business ecosystem. The Small Business Tax Regime is a testament to our dedication to your success. 🌱🌺
For more updates and detailed guidelines on how to take advantage of these exciting changes, please visit our website. We're here to help you navigate the transition smoothly and answer any questions you may have. 📞📧
Together, let's build a brighter future for small businesses! 🌟✨
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Sam Koim, OBE
Commissioner General
Internal Revenue Commission of Papua New Guinea Date; 29th August 2023
