"Revenue from the community
for the community"
PAYE

PAYE (Pay As You Earn) refers to the tax withheld from employment income.

It is the obligation of the employer to withhold PAYE (if any) and remit to the Ministry’s office. Payment must be accompanied by the appropriate form which is Form 7. As an employer you must make the correct PAYE deductions from your employees' earnings including any benefits you provide, meet your filing and payment obligations with regard to PAYE.

If you do not lodge proper PAYE returns and pay tax due (if any), any salary and wage claim in your income tax return will not be allowed.

Old Tax Rate - Up to June 2017

Gross Income

Tax Rate

$0 - $7,400

Nil

$7,401 - $30,000

10%

$30,001 and over

20%

 

 

 

 
New Tax Rate - July 2017

Gross  Income

Tax Rate

$ 0   -   $10,000

0%(Tax Free)

$10,001  - $30,000

10%

$30,001  -  $60,000

20%

$60,001  and over

25%

Schedule of Deduction
 

DAILY WAGE(366 DAYS)

DAILY WAGE(365 DAYS)

WEEKLY SALARY (53 PAYS)

WEEKLY SALARY (52 PAYS)

TWO WEEKLY SALARY (26 PAYS)

TWO WEEKLY SALARY (27 PAYS)

BIMONTHLY SALARY ( 24 PAYS)

MONTHLY SALARY

Threshold

Amount

Tax

Amount

Tax

Amount

Tax

Amount

Tax

Amount

Tax

Amount

Tax

Amount

Tax

Amount

Tax

0-$10,000.

$0 to $28

Nil

$0 to $28

Nil

$0 to $189

NIL

$0 to $193

NIL

$0 to $385

NIL

$1 to $371

NIL

$0 to $417

NIL

$0 to $834

NIL

 

$28

$0.07

$28

$0.06

$189

$0.03

$193

$0.07

$385

$0.04

$371

$0.06

$417

$0.03

$834

$0.07

$10,000-$30,000

$28 to $82

$0.07 plus for each $1 above $28 add $0.10

$28 to $83

$0.06 plus for each $1 above $28 add $0.10

$189 to $567

$0.03 plus for each $1 above $189 add $0.10

$193 to $577

$0.07 plus for each $1 above $193 add $0.10

$385 to $1154

$0.04 plus for each $1 above $385 add $0.10

$371 to $1112

$0.06 plus for each $1 above $371 add $0.10

$417 to $1250

$0.03 plus for each $1 above $417 add $0.10

$834 to $2500

$0.07 plus for each $1 above $834 add $0.10

 

$82

$5.47

$83

$5.64

$567

$37.93

$577

$38.48

$1,154

$76.95

$1,112

$74.25

$1,250

$83.33

$2,500

$166.67

$30,000-$60,000

$82 to $164

$5.47 plus for each $1 above $82 add $0.20

$83 to $165

$5.64 plus for each $1 above $83 add $0.20

$567 to $1133

$37.93 plus for each $1 above $567 add $0.20

$577 to $1154

$38.48 plus for each $1 above $577 add $0.20

$1154 to $2308

$76.95 plus for each $1 above $1154 add $0.20

$1112 to $2223

$74.25 plus for each $1 above $1112 add $0.20

$1250 to $2500

$83.33 plus for each $1 above $1250 add $0.20

$2500 to $5000

$166.67 plus for each $1 above $2500 add $0.20

 

$164

$21.87

$165

$22.07

$1,133

$151.17

$1,154

$153.88

$2,308

$307.77

$2,223

$296.49

$2,500

$333.33

$5,000

$666.67

$60,000 -

$164 and above

$21.87 plus for each $1 above $164 add $0.25

$165 and above

$22.07 plus for each $1 above $165 add $0.25

$1133 and above

$151.17 plus for each $1 above $1133 add $0.25

$1154 and above

$153.88 plus for each $1 above $1154 add $0.25

$2308 and above

$307.77 plus for each $1 above $2308 add $0.25

$2223 and above

$296.49 plus for each $1 above $2223 add $0.25

$2500 and above

$333.33 plus for each $1 above $2500 add $0.25

$5000 and above

$666.67 plus for each $1 above $5000 add $0.25

Paye Calculator Worksheets

1.  PAYE Worksheet - July 2017

2.  Old PAYE Worksheet

Forms

As an employer are obliged to complete certain PAYE related forms.

  • Monthly Tax Withholding Returns (PAYE form)

 

You must complete Form 7 and lodge it to the Ministry office. This form should list all your employees and their gross wage details for the relevant month and PAYE (if any).

  • Withholding Tax Certificate

 

Within 14 days after the end of the financial year, you must provide each of your employees with a tax withholding certificate which is Form 4. This form should show the gross salary or wage earned by the employee in the year less the amount of tax deducted.

  • Annual Tax Withholding Reconciliation (PAYE reconciliation)

 

This is the reconciliation of all the monthly PAYE returns lodged during the financial year which is lodged using Form 8. A complete PAYE reconciliation must have the form 8 together with a copy of the Form 4 of each employee you have. If you have 10 employees, you must lodge one Form 8 and ten Form 4s (one for each of your 10 employees).

Improving the lives of Tongans through effective & efficient tax & customs administration