Income Tax Law Amendment

The House of Representatives has amended the Income Tax Law published in the Government Gazette on 20th December 2019 and will have immediate effect for the 2019 tax year.

Although in the Gazette is not clearly stated, this is applicable from the tax year 2019 onwards.

The amendment increases the limit of allowances from 1/6th to 1/5th of an individual’s taxable income before such allowances.

The allowance consists of the following aggregated contributions and premiums:

  • Social Insurance Fund
  • Approved Pension and Provident Funds
  • General Healthcare System (GHS)
  • Life Insurance policies (maximum 7% of the insured amount)
  • Medical and other approved funds (maximum 1,5% of remuneration)


Employers should therefore re-consider their payroll calculations moving forward based on the above amendment.


For any questions or clarifications on the above amendment please contact our team of tax advisors.