This article is intended to provide you with a simple and logical introduction to some basic principles of Income Tax as it applies to employees.
The Income Tax Act [Chapter 23:06] specifies what elements of an employee’s remuneration or earnings are subject to tax and at what rate of tax. It also deals with what income is exempt from tax and what deductions are allowed from these earnings, prior to tax being calculated.
Assume then for a moment that everything you earn - be it in cash, benefits, or an item of value you are given instead of cash - is subject to some form of tax. However, the determining of the value and its associated tax liability in respect of any of these forms of payments will differ in some cases.
The official tax table operates on an escalating scale basis, (i.e. the higher your earnings, the greater percentage tax you pay on each bracket of earnings). When your earnings reach a certain amount, the percentage stops increasing and a flat rate of tax becomes applicable for any earnings above this level - that is Marginal Tax Rate (MTR).
The tax-free threshold for individual taxpayers has been raised from US$250.00 to US$300.00 with effect from 1st January 2015.
The rate of tax for individual taxpayers who earns remuneration of above US$20 001.00 per month was increased to 50% with effect from 1 January 2014
The due date for the submission of PAYE returns and payment is the 10th of the following month.
PAYE is calculated as follows:
Determine gross income for the day/week/month/year.
Deduct exempt income, for instance bonus:
You get => Income
3. Deduct allowable deductions, e.g. pension:
Check the latest: Tax Table
Related to paye Zimbabwe;
TAX calculator Zimbabwe
ZIMRA tax table
income tax rates in Zimbabwe
PAYE Zimbabwe 2015
ZIMRA paye tables 2016
ZIMRA paye form
ZIMRA tax tables 2016
ZIMRA paye 2016
No comments:
Post a Comment