Employee Tax
Tax on salaries, wages and benefits (Title II)
Persons subject to tax
– Under Article 52, it is the payer of salaries who must withhold the tax on behalf of the employee.
– Individuals who earn business income (subject to Title I tax), or who have worked for more than one employer during the year, must file their own Title II tax return R8; in this case, there is no withholding at the level of the employer.
Tax base
Net income for purposes of Title II tax is determined as gross income (Article 49). Family abatements are then deducted from net income to arrive at taxable income. These abatements are the same as those under Article 31, which are shown above
Tax rates
This Tax (Title II) is subject to a progressive rate structure after deducting the related Family Abatement
as per the following Tax Schedule rate:
| Range | % |
| 000,000 – 6,000,000 | 2% |
| 6,000,001 – 15,000,000 | 4% |
| 15,000,001 – 30,000,000 | 7% |
| 30,000,001 – 60,000,000 | 11% |
| 60,000,001 – 120,000,000 | 15% |
| More than 120,000,000 | 20% |