Pay As You Earn (PAYE)

  Type of Taxes

Pay As You Earn Tax

In terms of Sectio​n 114 of the Inland Revenue Act No. 10 of 2006 or Sectio​n 83 of the Inland Revenue Act No.24 of 2017 (from 1^st April, 2018) , Employers are required to deduct Income Tax on Employment Income of employees at the time of payment of remuneration.

For this purpose the Commissioner General of Inland Revenue specifies Tax Tables which are to be used in making such tax deductions. Since the Tax is paid at the time of earning the remuneration, This System is called Pay-As-You-Earn System (PAYE)

Payment of Tax

Every employer has obligation to deduct PAYE Tax from the Employee as per PAYE tax tables and the total deducted amount should remit to the department on or before 15^th of the following month.

Furnishing PAYE Returns

Due date : Return of PAYE Tax (PAYE) for a relevant Assessment Year, should be furnished on or before 30^th day of the month of April, of the following Assessment Year.

Submit to : Central Document Management Unit (CDMU), 1^st Floor of Inland Revenue building​​​​​​​​​ ​​​​

Downloads

PAYE Tax Tables