Tax payable is calculated in two steps. First, tax liability is calculated by applying the rates indicated above on the chargeable income of the individual. The second step is to reduce the tax liability by the tax credit to find the Tax Payable.
If an employee makes a contribution to an approved employer pension or provident fund, this contribution must first be deducted from the employment income to get to the chargeable income, which is then entered into the tax calculator. It is only the employee’s contribution, and not the total of employee’s and employer’s contributions, that is deductible from employment income. Further note that the calculator only uses monthly amounts.