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ITIP

What is ITIP?

ITIP stands for Income Tax Instalment Payments and is deducted from the employee's wage or salary (where applicable) by the employer on each pay day. The deducted amounts are credited to the appropriate employees at the end of the year and are then set-off against the income tax payable on the assessment issued in respect of that employee.

Who is covered by ITIP?

ITIP covers all employees and office holders which includes Directors and Pensioners. Under what legislation are employers required to deduct ITIP? Income Tax (Instalment Payments) Act 1974, Income Tax (Amendment) Act 1986, Income Tax (Modified ITIP) Regulations 1987 [Government Circular No 92/87].

How will I know how much ITIP to deduct?

You will be sent a TAX CODE - T6 in respect of each employee and sets of 'Tax Tables'.

See the menu on the left for further information on how to calculate ITIP.

Where and when should I pay the deducted ITIP?

The tax deducted should be paid into the Income Tax Division on a monthly basis.

Click here for further information.