With effect from January 1, 2022, no deduction of Income Tax under the P.A.Y.E. System should be made from the remuneration of employees whose gross income per month is Seventy-Five Thousand Dollars ($75,000.00) or less.
In arriving at the chargeable income of every individual taxpayer, a deduction based on the Table set out below should be made from the gross income for the relevant pay period.
Table: Threshold as per pay period
When the gross income exceeds the threshold of the pay period as provided in the above table, the remainder of the chargeable income is taxed at 28%
Employers should note that every employee is now entitled to a statutory allowance (income free of tax) of $900,000 per annum.