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 “Your PAYE Particulars” section: 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).