From 31 July 2024, the personal income tax threshold will be increased
Any extra pays (lump sum payments) will be subjected to the pre-31 July tax rate. This is to lessen the chance of employees getting a tax bill at the end of the tax year.
End of 2025 financial year square up. With one tax threshold from 1 April 2024 – 30 July 2024, and another threshold from 31 July 2024 – 31 March 2025, IRD will apply a composite tax rate for earnings in between the two tax thresholds.
The composite rates will happen on IRD’s end when they do the end of year tax assessments.
Smartly has an excellent article on this where most of the information in this is from:
https://lnkd.in/gQtcs6CH
