Click here to view the notice released by the Revenue Authority to employers.

To summarize:

If the change to the credit was not applied in October 2019, it means that employees may have paid more tax than due for that month.

To refund this overpayment of tax to the employee, employers are advised to offset the overpaid tax against the employee’s tax due for November 2019.

Employers who have not applied this in November 2019 are encouraged to ensure that it is done before the end of December 2019 as the employers will not be allowed to make any more offsetting beyond December 2019.

Please contact your consultant for further advice on how to apply the offsetting of tax.

Employers are also required to submit a report of employees whose earnings were between M3 025 and M4 000 for the month of October so that the Revenue Authority can facilitate in processing the employee’s tax refund as there will be no tax for November on the payroll to offset the overpayment of October. This must be done before the end of November 2019.

Please refer to the notice for more detail on what should be in this report and how to submit the report.