What is PAYE?

Pay As You Earn (PAYE) is a system of deducting tax at source from an individual whose income is from employment

Whose responsibility is it to deduct the tax?

It is the employer’s responsibility to deduct tax from the employee’s emoluments.

What happens to the tax deducted?

The employer is obliged to remit to the Zambia Revenue Authority, tax deducted by the 14th day of the month following the month of deduction.

Are there penalties for late payment of PAYE?

Yes. There’s a monthly penalty of 5% of the unpaid amount. Interest is also charged at 2%.