The National Revenue Authority (NRA) has on Wednesday 11 May 2022 issued a press release noting that deadlines for filing of Pay As You Earn (PAYE) and Withholding (5.5% and 10.5%) Tax Returns and Payment of any liability for the month of April is on or before the 15th May 2022.

NRA further noted that the Goods and Services Tax (GST) Returns for April is due on or before 31st May 2022.

“Please note that filing of Returns and payment of related taxes should be done via the Integrated Tax Administration System (ITAS) portal. Penalty and interest will be charged for non-filing and payment of taxes on the due dates,” the authority stated.

PAYE is a method of collecting tax at source from individuals in gainful employment. The employers will deduct tax according to the prevailing rates of tax from their employees’ salary or wages on each pay day for a month and then remit the tax to the Domestic Taxes Department via various commercial banks through the laid down procedure on or before the 15th day of the following month. The employee thus has no extra liability to pay at the end of the year unless he/she has income from other sources including the provision of other benefits-in-kind or other employment.

Section 23 (1) of the Income Tax Act 2000 taxes all fringe benefits as employment income. This includes the provision of a motor vehicle, housing, meals, chauffeur and domestic staff etc.

Penalty for default

10% if paid within 30 days from the due date.

15% % if paid after 30 days but less than 90 days from the due date.

20% if paid after 90 days but less than 180 days after the due date.

25% if paid after 180 days from the due date.