| Subject: | National Budget 2023-2024: Changes to Payroll and Point of Sale | | Summary: | Bula Team
Due to the change in the National Budget, below are the few changes which will be done in LinkSOFT.
- Payroll
- Social Responsibility Tax (SRT) – SRT will now be incorporated into the Pay As You Earn (PAYE) tax bracket and also a 5% reduction on income bracket above $270,000
- The new policy will be in effect from 1st January 2024
- Below is the Old tax Table (figure 1) and the New Tax Table (Figure 2)
Figure 1
Residential Individual | | | | Non-Residential Individual | |
Chargeable Income ($) | Income Tax ($) | Social Responsibility Tax ($) | | Chargeable Income ($) | Income Tax ($) | Social Responsibility Tax ($) |
0 - 30,000 | Nil | Nil | | 0 - 30,000 | 20% of excess over $0 | Nil |
30,001 - 50,000 | 18% of excess over $30,000 | Nil | | 30,001 - 50,000 | $6,000 + 20% of excess over 30,000 | Nil |
50,001 - 270,000 | $3,600 + 20% of excess over $50,000 | Nil | | 50,001 - 270,000 | $10,000 + 20% of excess over 50,000 | Nil |
270,001 - 300,000 | $47,600 + 20% of excess over $270,000 | 13% excess over $270,00 | | 270,001 - 300,000 | $54,000 + 20% of excess over 270,000 | 13% of excess over 270,000 |
300,001 - 350,000 | $53,600 + 20% of excess over $300,000 | 3,900 + 14% of excess over 300,000 | | 300,001 - 350,000 | $60,000 + 20% of excess over 300,000 | 3,900 + 14% of excess over 300,000 |
350,001 - 400,000 | $63,600 + 20% of excess over $350,000 | 10,900 + 15% of excess over 350,000 | | 350,001 - 400,000 | $70,000 + 20% of excess over 350,000 | 10,900 + 15% of excess over 350,000 |
400,001 - 450,000 | $73,600 + 20% of excess over $400,000 | 18,400 + 16% of excess over 400,000 | | 400,001 - 450,000 | $80,000 + 20% of excess over 400,000 | 18,400 + 16% of excess over 400,000 |
450,001 - 500,000 | $83,600 + 20% of excess over $450,000 | 26,400 + 17% of excess over 450,000 | | 450,001 - 500,000 | $90,000 + 20% of excess over 450,000 | 26,400 + 17% of excess over 450,000 |
500,001 - 1,000,000 | $93,600 + 20% of excess over $500,000 | 34,900 + 18% of excess over 500,000 | | 500,001 - 1,000,000 | $100,000 + 20% of excess over 500,000 | 34,900 + 18% of excess over 500,000 |
1,000,000 + | $193,600 + 20% of excess over $1,000,000 | 124,900 + 19% of excess over 1,000,000 | | 1,000,000 + | $200,000 + 20% of excess over 1,000,000 | 124,900 + 19% of excess over 1,000,000 |
Figure 2
Residential Individual | | | Non-Residential Individual |
Chargeable Income ($) | Income Tax ($) | | Chargeable Income ($) | Income Tax ($) |
0 - 30,000 | Nil | | 0 - 30,000 | 20% of excess over $0 |
30,001 - 50,000 | 18% of excess over $30,000 | | 30,001 - 50,000 | $6,000 + 20% of excess over $30,000 |
50,001 - 270,000 | $3,600 + 20% of excess over $50,000 | | 50,001 - 270,000 | $10,000 + 20% of excess over $50,000 |
270,001 - 300,000 | $47,600 + 33% of excess over $270,000 | | 270,001 - 300,000 | $54,000 + 33% of excess over $270,000 |
300,001 - 350,000 | $57,500 + 34% of excess over $300,000 | | 300,001 - 350,000 | $63,900 + 34% of excess over $300,000 |
350,001 - 400,000 | $74,500 + 35% of excess over $350,000 | | 350,001 - 400,000 | $80,900 + 35% of excess over $350,000 |
400,001 - 450,000 | $92,000 + 36% of excess over $400,000 | | 400,001 - 450,000 | $98,400 + 36% of excess over $400,000 |
450,001 - 500,000 | $110,000 + 37% of excess over $450,000 | | 450,001 - 500,000 | $116,400 + 37% of excess over $450,000 |
500,001 - 1,000,000 | $128,500 + 38% of excess over $500,000 | | 500,001 - 1,000,000 | $134,900 + 38% of excess over $500,000 |
1,000,000 + | $318,500 + 39% of excess over $1,000,000 | | 1,000,000 + | $324,900 + 39% of excess over $1,000,000 |
- Point of Sales
- Value Added Tax (VAT) - The three-tier vat rates have been amended to 0% and 15%, the following changes has been implemented:
- 9% VAT has been increased to 15% on goods and services whilst 0% remains the same.
- Zero rated VAT on 21 items remains (flour, rice, sugar, canned fish, cooking oil, potato, onion, garlic, baby milk, powdered milk, liquid milk, dhal, tea, salt, soap, soap powder, toilet paper, sanitary pads, toothpaste, kerosene, cooking) with the addition of prescribed medicine on the list. If a prescribed medicine is purchased of the self than the 15% VAT is applicable, whereas if the same medicine is prescribed by the Doctor that the VAT on the item will be zero.
- This policy will be in effect from 1st August 2023
- Vat Monitoring System (VMS) - The planned further implementation of the VAT Monitoring System will be paused whilst the entire system is reviewed by the new Government.
| | Audit Notes: | Edited by sanjay on 22/09/23 16:22. | | 11 Jul 2023 | 02:17PM Comment 1 by Navneet Kumar Assigned To: Navneet Kumar Followup Date: 11-07-2023 02:04 PM Time Taken: 1.00 | | As per discussion with Sanjay below are the discussion notes; - Payroll Tax - Use the Payroll Tax File upload to create the new tax brackets and import this.
- Point of Sale VAT - Create a tax code or amend the existing tax code to be 15%.
Note: There are no programme changes needed for this budget. The next release of LinkSOFT will have this as standard. Regards
Navneet |
| | 11 Jul 2023 | 02:18PM Comment 2 by Sanjay (Link Technologies) Case L12923 added to project 15.00 | | 14 Aug 2023 | 02:12PM Comment 3 by Vineshwar Prasad (Edge Business Solutions) Assigned To: Vineshwar Prasad (Edge Business Solutions) Followup Date: 14-08-2023 02:10 PM Time Taken: 1.00 Notes: ETC extended from: 11/07/2023 to 14/08/2023 | | Proceeding to close this case as all changes have been handled by Standard LinkSOFt functionality |
| | 22 Sep 2023 | 04:26PM Comment 4 by Sanjay (Link Technologies) Assigned To: Sitla Sharma (Edge Business Solutions) Followup Date: 25-09-2023 04:22 PM Time Taken: 1.00 Notes: ETC extended from: 14/08/2023 to 25/09/2023 | | Hi Sitla, Can you place the New Tax Table (similar to Table 1 in the header) as a comment so I can ensure the tax brackets are included in this release? |
| | 25 Sep 2023 | 01:05PM Comment 5 by Vineshwar Prasad (Edge Business Solutions) Assigned To: Sanjay (Link Technologies) Followup Date: 29-09-2023 01:02 PM Time Taken: 1.00 | | Hi Sanjay, I have attached the Nationa Budget for 2023-2024. This has the details of the Tax Tables on page 3. |
| | 26 Sep 2023 | 04:42PM Comment 6 by Sanjay (Link Technologies) Assigned To: Sanjay (Link Technologies) Followup Date: 06-10-2023 04:41 PM Time Taken: 2.00 | | Agreed to update New and Demo databases with current Tax Scale and review later in the year to update to the new rates. |
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