Kina Securities Limited (ASX:KSL) Announces Review of Tax Changes
Kina Securities Limited (ASX:KSL|PNGX:KSL) is reviewing the proposed 2025 National Budget, which includes significant changes to the corporate tax rate for commercial banks in Papua New Guinea. The proposal suggests reducing the corporate tax rate from 45% to 40% starting 1 January 2025, and further decreasing it to 35% from 1 January 2026.
The proposed changes apply to banks with annual earnings up to K300 million. For banks earning more than this threshold, the tax reduction will adjust from 45% to 44% for the year 2025, followed by a 1% decrease each subsequent year until it reaches 35%.
Kina is actively assessing the implications of these draft budget recommendations in consultation with industry stakeholders, PNG Treasury, and other government bodies. Notably, these tax adjustments will not affect Kina’s full-year profit outcomes for 2024.
Greg Pawson, Managing Director and Chief Executive Officer of Kina, expressed optimism about the proposed tax revisions. “We are encouraged that the Government is working to revise the increased 45% tax rate that was introduced on 1 Jan 2023. Kina has played a leading role in lobbying for positive changes to the tax rate, and this outcome will ensure greater competition amongst banks in PNG, enabling banks to allocate more capital for investment and business growth,” he stated.
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