Half tax deduction before Christmas
The Directorate of Taxes has recently received a number of enquiries with questions about whether it is appropriate to propose changes to the Christmas deduction for monthly paid employees.
Under Section 5-7-2 of the Tax Payment Regulations, half the normal tax must be deducted from the December salary.
The Directorate of Taxes has begun work to revise the Regulations to enable the half tax deduction to be made from the salary for November, rather than December. This task will not be completed in time for salary payments in November this year.
Because the Regulations are currently in the process of being revised, the Tax Administration will not carry out any checks or impose any sanctions on employers who decide to deduct half tax from salaries in November rather than December.