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Italy vs Papua New Guinea
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇮🇹 Italy
vs
🇵🇬 Papua New Guinea
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
23–43%
3-bracket IRPEF reform targeting completion
No change
22–42%
42% top; resource boom affecting distribution
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–22%
Digital economy VAT rules tightening
No change
10%
GST 10% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
30%
30%; new LNG projects fiscal terms negotiation
No change

Capital Gains Tax

Capital Gains Tax
26%
Flat 26% maintained
No change
17%
17% non-residents
No change

Social Security & Payroll

Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
~12.5%
Superannuation fund growth; coverage limited to formal
No change
State, Regional & Local Taxes

🇮🇹 ItalyRegional & Municipal Income Taxes

Italy's 20 regions levy addizionale regionale at 0.7%–3.33%. Municipalities add addizionale comunale up to 0.9%. Sicily, Sardinia, and Trentino-Alto Adige have special autonomous status. IRAP (regional business tax) at ~3.9% applies to businesses. Local property tax (IMU) is set by municipalities on investment properties. Cumulative marginal rates can exceed 50%.

🇵🇬 Papua New GuineaProvincial & Local Government Taxes

Papua New Guinea's 22 provinces and the National Capital District levy their own provincial income taxes on certain income types, business licence fees, and sundry local charges. The Internal Revenue Commission (IRC) administers national taxes. PNG's economy is dominated by extractive industries (LNG, gold, copper) under fiscal resource contracts. The LNG sector has transformed government revenues. Significant informal economy and subsistence agriculture outside the formal tax base. A GST at 10% applies broadly.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Italy vs Papua New Guinea: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (23–43% vs 22–42%). 🇵🇬 Papua New Guinea is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (4–22% vs 10%).

🏢 Corporate Tax: 🇮🇹 Italy offers a lower corporate rate (24% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇵🇬 Papua New Guinea taxes investment gains at a lower rate (17% vs 26%), benefiting investors.

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