PAYE changes from November 2019
PAYE system which was available under Inland Revenue Act No.24 of 2017
continued only up to 31st December 2019.Changes to PAYE system from 27th
November 2019 are as follows.
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27.11.2019 - Monthly PAYE liable limit has been
increased to Rs.250,000 from Rs.100,000 as per the notice issued by
Ministry of Finance
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01.12.2019 - IRD issued a Notice on implementing
Proposals made by Ministry of Finance on 27th November 2019.
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01.01.2020 - Introducing new PAYE tables for the
period from 01.01.2020 to 31.03.2020 as per the new proposals.
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05.02.2020 - IRD issued a notice abolishing PAYE
w.e.f 01.01.2020
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12.02.2020 - Detailed notice issued by IRD
explaining that PAYE is not applicable from 01.01.2020 for entire
employment income.
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18.02.2020 - Revised notice by IRD capturing
terminal benefits to PAYE mechanism again.
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08.04.2020 - IRD introduced Advance Personal Income
tax (APIT) w.e.f 01.04.2020 by replacing PAYE
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15.04.2020 - Re-introduced PAYE for the period from
01.01.2020 to 31.03.2020 and provided options to pay on
self-assessment basis or pay through the employer
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20.04.2020 - IRD issued detailed procedure for
deduction of APIT and APIT tables.
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02.05.2020 - IRD opened separate web page for APIT
tables and instructions.
Intention to abolish the PAYE system was to simplify the tax system for
tax payers.However IRD has reached to the same destination by
re-introducing PAYE as APIT.
