PAYE (Pay As You Earn) is, in fact, the income tax deducted by the employer from the employee’s salary. 

Who is responsible?

The responsibility for making correct PAYE deductions and submitting payments to the tax authorities lies with the employer.

How does it work?

1. At the beginning of each year, every employee is required to complete the employee’s income declaration using the IR59 form, providing details of all emoluments and personal allowances. Subsequently, the completed form must be returned to the employer.
2. The employer calculates the tax obligation for each employee based on his IR59 declaration.
3. On a monthly basis, the employer deducts the appropriate tax from the employee’s salary and submits the payment to the tax authorities, on behalf of the employee.

Deadline

PAYE should be paid by the end of the following month, meaning that for January, the payment should be made by the end of February.

As always, M. Target Group specialists remain at your disposal should you require any further information, clarification or professional assistance with any tax matter.