2013/2014 INCOME TAX STRUCTURE - RESIDENT INDIVIDUALS
The rates of Income Tax upon resident individuals, that is, persons other than companies, minors and trustees are contained in the Second Schedule of the Income Tax Act 1993. The tax structure for the tax year commencing 1 April 2013 is as follows.
is less than M27,730 per annum (M2,310.83 per month) does not pay tax
is between M27,730 per annum (M2,310.83 per month) and M51,670 per annum (M4,305.83 per month) is taxed at the lower rate of 22%
exceeds M51,670 per annum (M4,305.83 per month) is taxed at the upper rate of 35%
Non-refundable tax credit of M6,100 per annum or M508.33 per month is available to all resident individuals.
Calculation of the Tax Liability
The tax liability is calculated in two stages. First, tax is found by applying the rates indicated above on the chargeable income of the individual. The second step is to reduce the tax by the tax credit to find the tax payable.
If a person makes a contribution to an approved pension fund, this contribution must first be deducted from the gross income/salary to get to the chargeable income, which is then entered into the tax calculator. It is only the individual’s contribution, and not the total of the employee/individual and the employer contribution that is deducted. Further note that the calculator only uses monthly amounts.