Employers are reminded of the following change related to personal income tax (PIT) as announced in the 2019 Budgetary Proposal and Financial Statement and which will come into effect from January 1, 2020.
The second tax band on taxable income over $50,000 which was taxed at a rate of 33.5 per cent will now be taxed at 28.5 per cent. Accordingly, the first tax band on taxable income up to and including $50,000 will continue to be taxed at a rate of 12.5 per cent.
Employers are required to adjust their payroll to ensure that the correct rates are used for deducting income tax from wages and salaries.
The Policy Note giving further guidance to this change can be found on the Authority’s website.