Field help (CTR5TAXSTA)

This field is exclusively linked to African legislations.

Specify the tax status of the employee.
This status indicates the calculation and tax deduction method to apply to an employee. It is used to calculate the tax and benefits on the Payslip screen.

The list of statuses available from the drop down list is linked to the legislation of your folder. The possible values are:

• Statutory tables:
  - For Nigeria: PAYE is calculated according to statutory tax tables.
  For other countries, tax is calculated according to the latest statutory rates.
• Tax directive (directive fixed amount): Tax should be calculated according to a fixed amount as per the directive.
• Temporary/Part time: Tax is calculated according to the latest statutory rates, but rebates should not be applied. Tax deductible deductions are allowed for temporary or part time employees.
• Independent contractor: No tax should be calculated for a true independent contractor.
• No tax: No tax is calculated. This option is only allowed in prescribed cases and should not be used on a general basis.
• Resident: Tax is calculated according to the latest statutory rates.
• Non-resident: Tax is calculated according to the latest statutory rates for non-residents.
• Exempt:   No PAYE is calculated.
• Directive %:   Use this option to enter the percentage according to a Directive from the Commissioner. This percentage will be used to tax the employee’s income. The system will prompt you for a directive number when you enter the percentage. The "Directive number" field is a mandatory field.
• Labor broker - Natural person: Tax should be calculated according to normal tax rates for a labor broker (natural person). Tax rebates should be applied and tax deductible deductions are allowed.
• Labor broker - Other: Tax should be calculated according to normal tax rates for a labor broker (other). Tax rebates should not be applied and tax deductible deductions are not allowed.
• Personal service company: Tax should be calculated at 30%. The percentage must be applied before taking allowable deductions into account. Rebates should not be applied.
• Personal service trust: Tax should be calculated at 33%. The percentage must be applied before taking allowable deductions into account. Rebates should not be applied.
• Non-executive director: Tax should be calculated at a flat rate of 33%. This percentage represents the highest marginal rate applicable to individuals. The percentage must be applied after taking allowable deductions into account, if applicable. Rebates should not be applied.
• Secondary job: Tax is calculated at a flat rate of 30%, This percentage represents the highest marginal rate applicable to individuals. Tax credit should not be applied.
• Permanent/Temporary resident
• Permanent/Temporary non-resident
• Part time resident
• Part time non-resident
• Casual Worker