Employees have to furnish every year to their employer a PAYE Employee
Declaration Form (EDF) claiming the Income Exemption Threshold to which they are entitled in an income year. An individual is entitled to the Income Exemption Threshold which corresponds to the category he falls in as hereunder indicated :
- Category A individual with no dependent 270,000
- Category B individual with 1 dependent 380,000
- Category C individual with 2 dependents 440,000
- Category D individual with 3 dependents 480,000
- Category E Retired person with no dependent 320,000
- Category F Retired person with 1 dependent 430,000
At the beginning of an income year the MRA will provide EDFs to all persons who are registered as employers with the Director-General. The forms should be made available to employees to enable them to claim the Income Exemption Threshold to which they are entitled. Where a person is registered as an employer in the course of an income year, the forms will be provided to him at the time of registration. The EDF may also be downloaded from the MRA website.
On receipt of EDFs from employees, the employer should ensure that the forms are duly completed and signed. A form without any claim for Income Exemption Threshold is not valid and the employee concerned should be treated as if he had not furnished an EDF. The law makes it an offence for an employer to divulge or communicate to any person other than the Director-General any information contained in the EDF furnished by an employee or any matter relating to PAYE and concerning that employee. However, the employer may disclose to the employee or, with his written consent, to any other person any information or matter relating to PAYE concerning that employee.