Income-Tax Threshold To Rise From $200 To $250

0
586
shutterstock_274577444-copy
The new amendment will help low-income earners keep some extra cash in their pockets.

The National Assembly is currently reviewing a draft legislation that would raise the lowest taxable income threshold from $200 to $250.

The proposed tax amendment is expected to pass and come into effect in January next year.

“The tax amendment is aimed to incorporate a policy that balances different income levels,” said Mey Vann, director of the financial industry department at the Ministry of Economy and Finance. “The increase from $200 to $250 will mostly affect the lowest salary earners like government employees and garment workers, so we decided to amend the tax so that they can avoid being taxed.”

Coupled with the announcement in October that the 20% fringe benefit tax would be waived across all industries, experts believe this should encourage increased compliance for employers transitioning into the formal regime of taxation.

For more on this story, click here.