How much tax will be paid if the employee pay has no declaration is lodged in Papua New Guinea?

If an employee's tax declaration is not lodged, the employer will be required to withhold tax at the highest marginal tax rate, which is typically around 45% in most countries. This means that the employee's pay will be subject to a higher rate of tax withholding until they provide their tax declaration. It is important for employees to lodge their tax declaration in order to ensure that they are paying the correct amount of tax based on their individual circumstances.

If an employee does not lodge a tax declaration, the employer will withhold tax from their pay as if they were claiming the minimum number of tax-free allowances (one). This means that the employee will pay the maximum amount of tax possible.

The amount of tax that will be withheld will depend on the employee's income and the tax rates that apply to them. For example, if an employee earns $500 per week, they will pay $92 in tax if they do not lodge a tax declaration.

It is important for employees to lodge a tax declaration so that they can claim the correct number of tax-free allowances. This will ensure that they are not paying more tax than they need to.

K60.74