PERSONAL INCOME TAX

PERSONAL INCOME TAX

Personal Income Tax is tax that is levied on the income of individuals who are either in employment or are engaged in their own business. The Tax encompasses both PAYE and Direct Assessment.

PAYE

Pay As You Earn (PAYE) is a provision under the Personal Income Tax Act, 2004 (as amended) and it is the taxation of income of individuals derived from employment. This income includes salaries, wages, bonuses, allowances and benefits in kind.

DIRECT ASSESSMENT

Direct Assessment is an Income Tax which is imposed on self employed persons e.g. Directors, Accountants, Traders, Hair Dressers, Carpenters, Lawyers, Mechanics, Vulcanizers, Artisans etc.

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