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How is the Employment Income Tax Calculated?

The employment income tax liability for any employment income earner is the applicable rates multiplied by the total employment income. No deductions are allowed. GRA has table available for employers to use to determine the proper amounts to withhold. For example, if Mr. X earn employment income of D50,000 per month, then his income tax liability is as follows.

 

Taxable

Employment

Income

Tax Rate

Tax Liability

D1,500

0%

D0.00

D833

5%

D41.67

D833

10%

D83.33

D833

15%

D125

D833

20%

D166,67

D45,167

30%

D13,550

Total

 

D13,966.67

For employment incomes above D58,000 per annum, the monthly tax liability could be computed using the following formula: Employment Income Tax Liability = (Gross Employment Income -D58,000) * 30% + 5,000)/12.

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