PAYE changes from November 2019
PAYE system which was available under Inland Revenue Act No.24 of 2017 continued only up to 31st December 2019.Changes to PAYE system from 27th November 2019 are as follows.
- 27.11.2019-Monthly PAYE liable limit has been increased to Rs.250,000 from Rs.100,000 as per the notice issued by Ministry of Finance
- 01.12.2019-IRD issued a Notice on implementing Proposals made by Ministry of Finance on 27th November 2019.
- 01.01.2020-Introducing new PAYE tables for the period from 01.01.2020 to 31.03.2020 as per the new proposals.
- 05.02.2020 -IRD issued a notice abolishing PAYE w.e.f 01.01.2020
- 12.02.2020-Detailed notice issued by IRD explaining that PAYE is not applicable from 01.01.2020 for entire employment income.
- 18.02.2020-Revised notice by IRD capturing terminal benefits to PAYE mechanism again.
- 08.04.2020-IRD introduced Advance Personal Income tax (APIT ) w.e.f 01.04.2020 by replacing PAYE
- 15.04.2020-Re introduced PAYE for the period from 01.01.2020 to 31.03.2020 and provided options to pay on self-assessment basis or pay through the employer
- 20.04.2020-IRD issued detailed procedure for deduction of APIT and APIT tables.
- 02.05.2020-IRD opened seperate web page for APIT tables and instructions.
Intention to abolish the PAYE system was to simplify the tax system for tax payers.However IRD has reached to the same destination by re-introducing PAYE as APIT.
Published date : 22.05.2020
