26/04/2022
Just for your information. If need assistance please do not hesitate to contact us
Friendly Reminder SBT – Small 1st Quarter Payment
28th April is the Due Date for the Payment of K62.50 plus 2% on quarterly turnover exceeding K15,000.
🖇 Visit the page for more info: https://irc.gov.pg/pages/taxes/businesses-and-employers/small-business-tax-sbt
Small Business Tax (SBT) law was passed by Parliament in 2019. This initiative is to reduce, not only the compliance burden of micro and small operators but introduce significantly low concessional tax rates for those individuals who are operating micro and small businesses.
📌Applies to an individual conducting business as a sole trader and who satisfies the following conditions
👉Conducts business solely in Papua New Guinea
👉Not registered for GST
👉Not subject to income tax in the previous year
👉Total annual turnover is below K250,000
📌Business does not include professional services such as accounting, law, doctorate, engineering, etc,
📌Turnover is gross sales without any deductions for expenses and loss.
📌Two (2) categories of small businesses:
📍Micro business
📍Small business
📌MICRO BUSINESS
👉Business with annual turnover below K60,000
👉File annual SBT Return once a year
👉Pay flat tax of K250 flat tax once a year
👉Due date for filing and payment is 28 January
📌SMALL BUSINESS.
👉Business with annual turnover from K60,000 to not more than K250,000
👉File quarterly SBT Return four (4) times in a year
👉Pay K62.50 plus 2% on quarterly turnover that exceeds K15,000
👉Due date for filing and payment is the 28th day of the following month after the end of each quarter.
📌Generally, on average all SBT taxpayers would be paying K250/year except when ‘small’ make a sales turnover of more than K15,000.00 in a quarter. Then they pay K62.50 plus 2% of the amount that exceeded K15, 000. If below they pay K62.50/quarter which adds to K250/year.
📌Minimum records to maintain are records of sales and a wage register (if there are employees)
📌Assumed that employees would be receiving salaries below the fortnightly tax threshold of K480 or less.
📌Record must be maintained for three (3) years
