Govt. to re-introduce PAYE tax for employee convenience

The government has decided to re-introduce the Pay As You Earn (PAYE) tax as an advance personal income tax to be deducted by the employer, after considering pleas from employees, the Department of Inland Revenue (IRD) announced.

“With effect from 01.04.2020, on the request of employees whose gross remuneration for a month exceeds Rs. 250,000 per month or Rs. 3,000,000 for a year of assessment, an Advance Personal Income Tax could be deducted by the employer,” IRD stated. 

The IRD plans to publish a separate guideline on this shortly. 

Further, it stated that recent relaxation of income tax threshold to Rs. 250,000 would remain in effect.