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Taxes deducted from salary and wage earners by their employers form a very important part of our tax administration.  Streamlining the collection of PAYE, GST and related information, and integrating tax obligations into business processes, is crucial for modernising the tax system.

But it isn't just about streamlining those processes.  It's also a good time to look at the PAYE rules more generally to ensure they run smoothly.

The existing PAYE rules, where tax is withheld at source by the employer, work well for salary and wage earners.  For those who earn income that isn't subject to PAYE, like the self-employed, or independent contractors, the picture isn't as clear.  This means we need to look at whether withholding at source could be applied to a wider range of situations. 

 

PAYE review options

 

 

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