EDF Adjustment during the fiscal year

In this example, the employee submitted a first EDF with a self-exemption in July, then a second one in August with a total exemption of Rs 190,000. The EDF adjustment is then spread over the remaining months of the fiscal year. The below illustrations show how this adjustment is allocated across the months of August, September, and October.

PAYE Calculation Checklist illustrating how the EDF adjustment is applied in the month of August.

Follow the steps below to verify the PAYE calculation checklist:

• Check the Pay Period: In this example, the PAYE Calculation Checklist is for the month of August
• Check the section “Your PAYE Particulars”: In this example, the employee has submitted an EDF and is a Citizen of Mauritius
• Step 1: Check the Emoluments for the month, for example: Salary, Overtime, and Commission.
• Step 2: Check the Total emoluments paid in previous months, which in this example refers to the July emoluments, since the PAYE Calculation Checklist is for the month of August.
• Step 3: Ensure that the employee’s Reliefs and Exemptions are correctly applied according to their EDF.
• (0 * 2 / 13) + 0 + (15,833.33 * 1) are illustrated via 3(a–e) and correspond to the following:
• 3a → 0 shows that the EDF was submitted in July with only the self exemption.
• 3b → 2 corresponds to August, which is the 2nd month of the fiscal year.
• 3c → 13 represents the fiscal year running from July to June, which counts 13 months because it includes the end-of-year bonus.
• 3d → 0 indicates that there is no EDF adjustment for previous months.
• 3e → 15,833.33 * 1 corresponds to the total exemption of Rs 190,000 from the new EDF submitted in August, spread over the remaining 12 months of the fiscal year (from August to June).
• Step 4: Ensure that the Chargeable Income correctly corresponds to the difference between the Total emoluments (including Taxable benefits) and the less Reliefs and Exemptions.
• Step 5: Check the Tax Charged (PAYE) from the Tax on Progressive Scale table.
• Step 6: Check the Tax paid in previous months, which in this example refers to the July tax, since the PAYE Calculation Checklist is for August.
• Step 7: “Tax to be withheld in the month” represents the difference between the Tax Charged (PAYE) from the Tax on Progressive Scale table and the tax paid in previous months.

PAYE Calculation Checklist illustrating how the EDF adjustment is applied in the month of September.

Follow the steps below to verify the PAYE calculation checklist:

• Check the Pay Period: In this example, the PAYE Calculation Checklist is for the month of September
• Check the section “Your PAYE Particulars” : In this example, the employee has submitted an EDF and is a Citizen of Mauritius
• Steps 1 and 2 are the same as in the previous PAYE Calculation Checklist.
• Step 3: Ensure that the employee’s Reliefs and Exemptions are correctly applied according to their EDF.
• (0 * 3 / 13) + 15,833.33 + (15,833.33 * 1) are illustrated via 3(a–e) and correspond to the following:
• 3a → 0 shows that the EDF was submitted in July with only the self exemption.
• 3b → 3 corresponds to September, which is the 3rd month of the fiscal year.
• 3c → 13 represents the fiscal year running from July to June, which counts 13 months because it includes the end-of-year bonus.
• 3d → 15,833.33 corresponds to the EDF adjustment for the month of August.
• 3e → 15,833.33 * 1 corresponds to the EDF adjustment for the month of September.
• Steps 4 to 7 are the same as in the previous PAYE Calculation Checklist.

PAYE Calculation Checklist illustrating how the EDF adjustment is applied in the month of October.

Follow the steps below to verify the PAYE calculation checklist:

• Check the Pay Period: In this example, the PAYE Calculation Checklist is for the month of October
• Check the section “Your PAYE Particulars”: In this example, the employee has submitted an EDF and is a Citizen of Mauritius
• Steps 1 and 2 are the same as in the previous PAYE Calculation Checklist.
• Step 3: Ensure that the employee’s Reliefs and Exemptions are correctly applied according to their EDF.
• (0 * 4 / 13) + 31,666.66 + (15,833.33 * 1) are illustrated via 3(a–e) and correspond to the following:
• 3a → 0 shows that the EDF was submitted in July with only the self exemption.
• 3b → 4 corresponds to October, which is the 4th month of the fiscal year.
• 3c → 13 represents the fiscal year running from July to June, which counts 13 months because it includes the end-of-year bonus.
• 3d → 31,666.66 corresponds to the EDF adjustment for the months of August and September.
• 3e → 15,833.33 * 1 corresponds to the EDF adjustment for the month of October.
• Steps 4 to 7 are the same as in the previous PAYE Calculation Checklist.

The above illustrations shows how the EDF submitted in August is allocated across the months of August, September, and October. The same logic applies for the remaining months of the fiscal year.