# How much is PAYE in Zambia?

Personal income tax rates

## How much is PAYE in Zambia?

Personal income tax rates

Taxable income (ZMW) Rate of income tax (%)
Up to 54,000 0
54,001 to 57,600 25
57,601 to 82,800 30
Over 82,801 37.5

On what amount is PAYE calculated?

PAYE = (Total tax payable – total rebates) / 12 This may seem like a lot to consider, but is fairly simple. Let’s look at an example: Sipho is 29 years old and in 2017/2018 tax year earns a fixed monthly salary of R20 000.

### What is the percentage for PAYE?

This is called PAYE tax. This tax rate progresses from 7 percent to 24 percent of an employee’s taxable income.

Who is eligible for PAYE in Zambia?

Any person carrying on any business with an annual turnover of K800,000 or less. Any person whose business earnings are subject to withholding tax and it is not the final tax such as, rental income, commissions, interest earned by companies, royalties earned by residents, etc.

## Where is PAYE calculated from?

The PAYE calculated as a result is based on the employee’s earnings and includes basic salaries, bonuses, fringe benefits and other allowances. PAYE is calculated monthly and paid to SARS by your employer monthly, even if you are paid weekly / fortnightly.

How is PAYE deducted from salary?

PAYE – This stands for “Pay As You Earn” and it is the type of income tax that you pay. Your employer will deduct PAYE from your salary on a monthly basis and pay it to SARS on your behalf.

### Who must pay PAYE?

PAYE, or Employees tax, is the tax that employers must deduct from the employment income of employees – such as salaries, wages and bonuses and pay over to SARS monthly. It’s withheld daily, weekly, or monthly when these amounts are paid or become payable to the employees.

How do I calculate monthly PAYE?

The Basics

1. Regular monthly income = R10,000.
2. Annual equivalent = R10,000 x 12 = R120,000.
3. Tax calculated on R120,000 as per tax tables = R5,886.
4. PAYE payable on regular monthly income = R5,886/12 = R490. 50 p.m.

## When should PAYE be paid?

You must pay your PAYE bill to HM Revenue and Customs ( HMRC ) by: the 22nd of the next tax month if you pay monthly. the 22nd after the end of the quarter if you pay quarterly – for example, 22 July for the 6 April to 5 July quarter.

Who should register for PAYE?

Although some employers are exempt from paying SDL, all employers must be registered. See How to register for PAYE on eFiling. Where an employer is liable to pay UIF contribution, the employer must register with either SARS or the UIF office (whichever is applicable) for the payment of the contributions.

### How is monthly PAYE calculated?

What is the minimum salary for PAYE?

If you are earning a salary of R75 750 (2017: R75 000) per year or R6 312.50 (2017: R6 250) per month before deductions, you should be paying PAYE monthly on the salary you receive. If you earn less than R6 312.50 (2017: R6 250) per month, you are not required to PAYE on a monthly basis.