November 19, 2024
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    Withholding Tax, PAYE payments by resident or non-residents removed Featured

    February 07, 2020
     

    The Inland Revenue Department has removed the Withholding Tax (WHT) on any payments made to any resident person and Pay As You Earn (PAYE) on any employment receipts to any resident or non-resident individuals with effect from January 1, 2020.This is in keeping with the instructions of the Ministry Finance on January 31, 2020 pending formal amendments to Inland Revenue Act No 24 of 2017, the department stated in a notice.


    The Department said, accordingly withholding agents including employers are instructed not to deduct any WHT or PAYE on payments to be made on or after that date, other than on payments of winnings from a lottery, reward, betting or gambling and sale of gems.
    However, WHT on payments made to resident persons at 14 percent WHT on the amounts paid as winning from lottery, reward, betting or gambling, at 2.5 percent WHT on sale of any gem at an auction conducted by the National Gem and Jewellery Authority will continue to apply, it stated in a notice.
    The Withholding Tax on payments made to non-resident persons under Section 84 and 85, other than on employment receipts, will also apply, according to it.For further clarification,the Inland Revenue Department Call Center may be contacted by dialing 1944.

     

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