Thursday, Jul 18, 2019

Changes To Personal Income Tax Rates

Changes To Personal Income Tax Rates
11 Jul
2019

Employers are asked to note the following changes related to personal income tax as announced in the 2019 Budgetary Proposal and Financial Statement and which came into effect from July 1, 2019.

The first income tax band will be up to $50 000 and taxed at a rate of 12.5%, while the second tax band on income over $50 000 will be taxed at a rate of 33.5%. Accordingly, the old rates of 16% and 40% have been discontinued.

Employers are required to adjust their payroll to ensure that the correct rates are used for deducting income tax from wages and salaries.

Additionally, employers and taxpayers are advised that the child allowance will no longer be granted for the 2019 tax year, which is filed in 2020.

Therefore, in order to ensure that the correct deductions are made from their emoluments, taxpayers are required to update their declaration forms with their employer to effect this change.

The Policy Note giving further guidance to these changes and an updated version of the Employee Declaration form can be found on the Authority’s website.

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