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IRD Releases New Tax Rates for Upcoming Fiscal Year   

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IRD Releases New Tax Rates for Upcoming Fiscal Year   
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June 7: The government has changed the income tax rates for the new fiscal year.    
Following the announcement of the new annual budget by the Minister for Finance on May 29, the Inland Revenue Department (IRD) has released the new tax rates to be paid in the Fiscal Year 2022/23.    
According to the department, an unmarried individual has to pay one percent tax for up to Rs 500,000 income while the married couples will have to pay the same amount of tax for income up to Rs 600,000 per annum.    
Likewise, both the married and unmarried people are entitled to 10 per cent tax for income between Rs 600,000 to Rs 800,000.    
Similarly, 20 per cent tax is imposed on income ranging from Rs 800,000 to Rs 1,100,000.    
According to the department, an unmarried person has to pay 20 per cent tax for income between Rs 1 million to Rs 2 million while a couple earning Rs 1.1 million to Rs 2 million has to pay 30 per cent tax.    
Furthermore, those earning more than Rs 2 million per annum should pay tax equal to Rs 360,000.    
According to the IRD, an unmarried person having annual income of more than Rs 3 million should pay tax of Rs 745,000 while the married person has to pay Rs 716,000.    
The IRD said the provision of one percent tax is not applicable for the taxpayers having their firm registered independently, and the contributors to the pension income, pension fund and the contribution-based Social Security Fund. -- RSS

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