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Business News, Reviews and Overviews from the IPA pportunityIssue #12- December 2020 Business News, reviews and overviews from the IPA (MOU) with a number of key government, national development initiatives. MD’s INBOX private sector and development partners The primary objective of the strategy is to including with the Internal Revenue boost Papua New Guinea’s domestic and Commission, NASFUND and ADB. international trade in both tangible and The IPA also signed an MOU with the Oro intangible assets encouraging increased Provincial Government to extend its business activity, economic growth, and services to Oro Province. Oro Province is prosperity. Read more on this story in this the 8th province to sign an MOU with issue. IPA to promote the smoother exchange A kiosk has been introduced at the IPA oce of information on business, companies, premise to cater for walk in clients who are and association registrations and for interested in utilizing the online registry. Talk investment opportunities in Oro Province. to our sta for assistance to use this kiosk. IPA is also collaborating with the Small and As part of the IPA’s focus on its outlook, it has Medium Development Corporation (SMEC), reorganized its website with the intention of other relevant stakeholders and Government improving visibility on its registry services agencies to review the current SME Policy. portal. The IPA made presentations on its roles All in all, it has been a tough year but through and current mandate to regulate the continued support and collaboration we all CLARENCE M HOOT implementation of the Cottage Business made it throughas a team. As such, let me Managing Director Activities List (formerly the Reserved thank you all once again for your support arm season’s greetings readers and Activities List) for Papua New Guineans and this year. Continue to uphold safe and good Wwelcome to the 12th and nal edition of its plans to achieve the Government’s policy health practices as we end this year. the IPA’s monthly ‘Opportunity Newsletter’ for objective of protecting SMEs that are owned On behalf of the Board, the Management and this year, 2020. and operated by citizens and to attract Sta, I wish you all a very Merry Christmas and This year hasn’t been an easy one for the IPA Foreign Direct Investments (FDI) given the a safer and prosperous 2021. as an organization and I’m sure it has been the already low levels of FDI worldwide. same for all other organisations domestically I’m also pleased to announce that the Thank you and happy reading!! and abroad and for us all as individuals as well. National Executive Council (NEC) has And despite operating under the new endorsed the implementation of the normal protocols, the IPA has achieved quite country’s National Intellectual Property Clarence M. Hoot a number of milestone outcomes during the Strategy 2020-2030 which is a policy Managing Director year. document that is intended to provide a One of these milestones is the signing/re- roadmap to guide the integration of newing of Memorandum of Understanding intellectual property into the country’s EXPENSIVE WHEN YOU DON’T Tips & Traps IN THE LODGE ANNUAL RETURNS ON TIME NEWS t becomes an expensive exercise when you calculations will be; K1, 000 (annual penalty) Ido not lodge your company’s Annual Return x 8 (years) + K300 (lodgment fee) x 8 (years) IPA hosts workshop on time and decide to do so after a while. = K10, 400. 00. Companies can get deregistered if they on Strategic Plan Here is an illustration of the above statement. do not le their Annual Returns as late as 6 months. If the company in the above example If you own a company then you need to lodge is de-registered and wishes to apply for rein- your company’s Annual Returns each year. statement then it will need to pay the K10, The fee to lodge an Annual Return is K300 if 400 plus a K3, 000 administrative fee. The total you lodge it over the counters or K250 if you payable for reinstatement would therefore be go online. If you miss a year of lodging your K13, 400. 00. This excludes the costs of pub- Returns, you are liable of a ne of K1, 000. This lishing the reinstatement notice in the media, means that when you’re lodging your late Re- which is a requirement of the reinstatement turns manually, you will pay a total of K1, 000 process. plus the normal lodgment fee of K300, or if It’s better to spend money on things that IPA’s Managing Director, Mr Clarence Hoot addressing the you go online it would be K1, 000 + K250. will grow your business then paying nes for IPA management during the Strategic Plan Workshop. avoidable circumstances. he Investment Promotion Authority (IPA) For example, say your last Annual Return was Trecently hosted a workshop to nalize its lodged in 2010, and you wish to visit the IPA Strategic Plan for the years 2021 to 2023. oce to lodge your outstanding returns this Senior management and technical sta year. Technically speaking, you will be lodg- ing returns for 8 outstanding years (2010, Continue on to next page.......... 2011, 2012, up till 2018). Therefore, your INVESTMENT PROMOTION AUTHORITY | Page 1 continued from previous page........ from IPA and board members were in 7. Multi-Agency Interface: There is a attendance to contribute to the development 3. Sectoral Rebalancing: With Govern- need to build and maximize the strategic of the plan. The IPA normally prepares its year ment refocus on the development aspira- alliances on the compliance and audit Strategic Plans in-house. tions; it is equally important to reenergize front. The Authority could potentially lead The Plan will take over from 2018 to 2020 Plan the traditional sectors of agriculture, for- the charge in identifying issues common which comes to an end this year. It is aimed at estry, sheries and tourism. The Author- to all regulators for a unied approach to fostering and strengthening aliation with ity’s promotional focus must be to identify be taken; line agencies and government to reduce and promote investment opportunities in revenue leakages such as Taxation, Taris, and these sectors through awareness to all 8. Greater Eciency and Customer Financial Terrorism. provinces; Services: There are greater challenges to It also aims at addressing other non pursue better eciencies in our processes compliance issues and working within the 4. SME Response: IPA to incorporate taking into account the new develop- framework of its strategic mandates and SME support plan providing a balance ments in ICT. The market expects and government plans particularly Policy on in- between FDI considerations and small the Authority ought to deliver on critical vestment facilitation and promotion and to business development who can involve in awareness on how to use the system as it further improve on online registry system and accessing nancial support with commer- is; encourage clientele usage for the next three cial and nancial institutions; years. 9. IPA Dichotomy: A better denition 5. Ease of Doing Business: The next of the two parts of the legislative mandate The IPA Strategic Plan 2021 - 2023 is premised generation regulatory issues relating to relating to promotion and regulation is to continue on a number of key considera- regulatory reviews of any trade and in- currently undergoing review; tions and institutional issues which include: vestment environment within and be- yond our borders are important. A multi 10. Revenues: Revenue raising is a 1. National Content: Reorganizing and agency approach is crucial for any mean- monumental challenge under the current promoting the importance of IPA’s facili- ingful intervention to take place and for economic conditions and budgetary con- tating role in building credible small to any impact to be telling and signicant. straints. The future sustainability of the medium enterprises (SME) by latching Our continue engagement with develop- Authority rests in our ability in the current on to the large FDI inows which would ment partners and APEC gives us the lev- Strategic Plan period to identify and con- fast-track development of SMEs credible erage to initiate important conversations solidate new revenue streams to counter enough to move into the industry based with other stakeholders; the current economic uncertainties and global value chain; 6. Information Communication Tech- 11. Policy Advocacy: Policy advocacy 2. Growth Enablers: PNG’s develop- nology: The ICT platform that the Author- work including the completion on Invest- ment sectors are infrastructure, educa- ity has presents exciting opportunities ment Promotion Act 1997 and National tion, health, communication and the through cloud hosting platform of better Investment Policy Volumes 1 and 2. The energy sector. The government is invest- delivery of services to our stakeholders. IPA is at the forefront of private sector in- ing heavily in these sectors but domestic There is also the need to create synergies terface and venturing partnerships with capacity to execute these investments is with existing bodies to maximize the IPA stakeholders and business community is very limited. This capacity limitation rep- exposure; crucial. resents important business opportunities; The IPA Managemnt posing for a photo session after a successful 2021 - 2023 Strategic Plan Workshp INVESTMENT PROMOTION AUTHORITY | Page 2 IN THE NEWS IPA 2020 key highlights and looking beyond One of the key objectives of the amend- this MOU that the IPA has given an oce ments is to pursue the Government’s policy space and counter to IRC at the IPA head oce objective of taking back PNG and promot- inKonedobu so clients who collect their busi- ing and protecting PNG MSMEs that are ness certicates can proceed with lodging ap- owned and operated by citizens, while at the plication forms for Tax Identication Numbers same time encourage existing businesses to (TIN).
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