On Tuesday 08th December 2020, the Malawi Revenue Authority (MRA) conducted workshops with estate employees in Thyolo and Mulanje to explain and clarify new rates for Pay As You Earn (PAYE) and demonstrate how the tax is calculated and administered.
Speaking at the start of a meeting in Mulanje, the Head of Corporate Affairs, Steven Kapoloma, said employees must be well aware and conversant with how PAYE is calculated and administered in order to avoid misunderstandings between the employee and the employer.
He added that the zero percent threshold had been increased from K45, 000 to K100, 000 and it was for that reason that MRA was engaging various employees and employers in the country in order to demonstrate how PAYE is calculated and administered
“As MRA, we are aware that most employees here receive their salaries fortnightly and also receive extra income such as overtime allowances. It is, therefore, very important that we as a revenue body should engage you to demonstrate how PAYE is administered and calculated,” he added.
In this regard, Kapoloma urged the participants to ask as many questions as possible so that they should better understand how PAYE is calculated fortnightly and monthly.
Speaking in Thyolo, a representative from the Tea Association of Malawi, Flemings Mwenibabu, thanked MRA for the workshops, saying they were fruitful and that they would go a long way in addressing the misunderstanding that usually arise when employees are deducted PAYE.
The two meetings were attended by employees from Conforzi, Makandi, Satemwa, Lugeri, Naming’omba, Chitakale, Eastern Produce Limited and Zoa tea estates.
MRA is in the process of engaging different sectors in the economy that have been affected by the Domestic Taxes changes that became effective on 3rd November 2020. Meanwhile, the Authority has already met employers, cooking oil manufacturers and those in the gaming industry.
By NAPO SIMKONDA