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 came into effect from 1 April 2020 and is as follows:

Chargeable Income Rate of Tax

First  M61, 080.00 - 20%

Over M61, 080.00 - 30%

NB: Non-refundable Tax Credit of   M10, 080.00 per annum is allowable to all resident individuals.

Calculation of Tax Payable

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.