This article highlights the changes introduced to tax remittance process by Internal Revenue Commission (IRC) of PNG, from 1 June 2018,
Unacceptable payment methods
Personal Cheque and Company Cheque
Acceptable payment methods
All bank debit cards are accepted at EFTPOS terminals in our POM, Lae and Kokopo offices.
Provide following details when initiating tax payment under this method
|IRC Biller Name / Code||Internal Revenue Commission /11628|
|Your nine-digit Tax Identification Number (TIN)||E.g. 5xxxxxxxx|
|The type of tax you're paying||E.g. GST, SWT, CIT, PIT, etc.|
|The period or year the payment is for||E.g. 10/17 for October 2017|
- EFT DIRECT PAYMENT
Provide following details when initiating tax payment under this method-
|Payee||Internal Revenue Commission|
|Bank Name||Bank of Papua New Guinea|
|Address (if required)||Corner of Douglas St, To Robert Haus, Section 25 Allotment 1, Port Moresby|
|Field||TIN/Tax type/ Tax period in DDMM format|
CREDIT TRANSFER APPLICATION
This method is convenient for rural customers. You can make payments to IRC by giving instructions to your local banks to execute direct credit transfers through the bank's KAT System. You can do that over the counter or by sending formal instructions to your bank. Ensure to use the IRC bank details indicated above. Take your IRC remittance advice with you so that the correct payment details are entered.
- BANK CHEQUE / BANK DRAFT
Cheque payments that are over K5,000 must be paid by way of Bank Cheque or Bank Draft. These are cheques issued by a commercial bank in PNG and drawn against that bank, as opposed to the taxpayer's bank account.
Our final word
It is likely that IRC may reject a payment as unacceptable and impose late penalty. However, taxpayer may invoke Regulation 43 of Income Tax Regulations 1959 that allows payments by way of cash, bank notes, cheque, bank drafts, postal money order, postal note, telegraphic transfer etc.
If you need assistance in remitting your business taxes, need more time to switch over or assistance with any late penalties charges owing to this new instruction, call us at 3202676 /3202677 or email [email protected]