Individual - Significant developments

Last reviewed - 20 August 2021

Effective 1 July 2016, the Income Tax Act (ITA) introduced a requirement for resident individuals employed by diplomatic missions and other prescribed organisations entitled to diplomatic immunities and privileges to file income tax returns.

Previously, such individuals (along with employees generally) were not required to file an income tax return if their sole income comprises employment income derived from a single employer from which tax is withheld at source (via the pay-as-you-earn [PAYE] system).

The intention seems to be to require such employees to account for their own income taxes if PAYE is not being withheld by their diplomatic organisation employer. However, based on the wording, the filing of a personal income tax (PIT) return will still be required even if the employer is deducting PAYE.

Amendments for financial year 2017/18

The ITA 2017 amended the formula for determining the value of a benefit that accrues to employees who are provided with company motor vehicles for private use by taking into account depreciation of the vehicles.