Clarification for Budget 2022 Related to Salaries & Tax Calculation Rate

A new decision number 686-1 dated 23-11-2022 was issued from ministry of finance referring to Budget 2022 that requested  the followings:

  1. Starting 15/11/2022 employer who paid salaries in USD must calculate salaries and related tax on new rate that will be mentioned in another decision (decision number 687-1)
  2. If employer paid salaries for previous three quarters in USD so they must re-calculate the salaries on the new rate that will be mentioned in the other decision(decision number 687-1) and add the difference in quarter four 2022.
  3. For tax calculation, employer must add the difference mentioned in point”2” to salaries related to quarter four in the new rate and recalculate the full salaries after using the new family exemption and new tax brackets as mentioned in budget 2022.
  4. If tax result was negative, employer can request from MOF tax refund along with representing the supported documents needed.

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