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This site provides you with a lot of information about tax law and practice.

You should also visit our related topics in the boxes at the top and the bottom of this page, particularly the topic on G.S.T.

Tax for wage and salary earners

If you are a wage or salary earner you will pay income tax through compulsory PAYE deductions ("Pay As You Earn") from your wages or salary. Everyone knows this. The amount deducted is based on your annual income.

The amount of PAYE deducted depends also on which tax code applies to you.

On Budget night, May 19 2005, the Government introduced new tax rates to take effect from April 1 2008!  Big deal!  They are miniscule changes.  As the Employers and Manufacturers Association wryly noted -

"Timid.  Most of us won't lose sleep figuring out what to do with an extra $8 per week in 2008"

But here are the current figures -

15%   -   $0 - $9500

21%   -   $9500 - $38,000

33%   -   $38,000 - $60,000

The future figures will be  - 

The 21% figure will start at $10.081

The 33% figure will start at $40,324

The 39% figure will start at $63,673

You can find out your tax code by obtaining a copy of the tax code declaration form ( IR 330 ) from Inland Revenue; you can phone them on 0800 257 773.

They will send you the form, or you can download the form from the IRD website at :

 

.  .  .  IRD Website

 

When you start your job you have to complete a tax code declaration form, which, among other things, will determine the amount of PAYE that will be deducted.

While you may have someone file this form on your behalf, you have the ultimate responsibility for its contents, and therefore will be responsible for any interest and penalties if less than the correct amount is deducted from your income.

However, if the person who completed your tax form was providing you with a service – for example, an accountant –

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