By Duncan Mlanjira
Malawi Revenue Authority (MRA) is urging employers who are paying domestic workers in excess of K45,000 register them at MRA as required by the Taxation Act by February 17, 2020.
According to reports, once they register their employees, all employers whether corporates and entrepreneurs will be given a Taxpayer Identification Number (TPIN).
This is the number that creates an account with MRA into which all remittances are reflected and that all correspondents with MRA is done based on the TPIN.
According to MRA, income is taxable regardless of its nature or form and in terms of employment, all employees are required to pay tax in the form of Pay As You Earn (PAYE).
“The form of employment is also not an issue,” said a top MRA officer. “The Taxation Act indicates that all employees getting in excess of K45,000 per month should pay PAYE.
“The operation of PAYE places the responsibility on the employer to deduct PAYE when salary or wage is being paid to the employee. The employer remits the amount deducted to MRA.
“In the event that an employer fails to deduct or remit the amount of PAYE deducted, the employer is personally liable to settle the amount and any related penalties.
“For an employer to properly operate PAYE, there is need to register with MRA and upon registration the employer is given TPIN,” said the officer.
Throughout this week till next week, MRA has been conducting sensitization workshops for free that attracted all stakeholders.
The new Domestic Tax came into effect on 22 November, 2019.