Employee desired flat rate 20%

In this example, the employee has not submitted an EDF but has requested the employer to deduct PAYE at a flat rate of 20%. Below is the PAYE Calculation Checklist illustrating how PAYE is applied for 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 not submitted an EDF, is a Citizen of Mauritius, and has requested a flat PAYE rate of 20%.
• Step 1 – Check the Emoluments for the month, for example: Salary, Overtime, and Commission.

• Step 2 – Check that the Total Emoluments paid in previous months is zero, since the employee was already taxed at a flat rate of 20% on previous emoluments; therefore, no cumulative amount applies.

• Step 3 – Ensure that Reliefs and Exemptions are zero, as the employee has not submitted an EDF and is therefore not entitled to any exemptions.

• Step 4 – Ensure that the Chargeable Income corresponds to the total emoluments (including taxable benefits), as no exemptions apply in this case.

• Step 5 – Check the Tax Charged (PAYE), which represents 20% of the chargeable income.

• Step 6 – Check that the Tax paid in previous months is zero, since the employee was taxed at a flat rate of 20% on previous emoluments and no cumulative tax applies.

• Step 7 – “Tax to be withheld in the month” corresponds to the amount of the Tax Charged (PAYE).