2013 Tax Brackets
The value of each tax credit point has been updated to 218 sh.
These changes are effective from Jan 1, 2013 (January 2013 salary).
|
Tax Bracket |
Gross pay |
Tax |
|
10% |
5,280 |
528 |
|
14% |
9,010 |
1,050 |
|
21% |
14,000 |
2,098 |
|
31% |
20,000 |
3,958 |
|
34% |
41,830 |
11,380 |
|
48% |
Each additional sh |
As of Jan 1st, 2013 the amounts exempt from garnished wages have been updated as follows:
single – 2,122 sh
widower/divorced/single parent + 1 child – 3,432 sh
widower/divorced/single parent + 2 or more children – 4,281 sh
couple – 3,183 sh
couple + 1 child – 3,692 sh
couple + 2 or more children – 4,201 sh
Notes:
1) The above amounts do not apply to garnished wages for alimony.
2) Should the above amounts be more than 80% of the monthly salary (after deductions for income tax and social security and health tax) the amount exempt shall be reduced to 80% of the actual monthly salary.
source: protection of salary law, 1958 update 2013
On Aug 13, 2012 The “law for reducing the national deficit and change of the burden of tax 2012” was made public.
This law goes into affect on Jan 1, 2013 and includes 2 items regarding employees:
1) A change in the tax brackets for salaried employees as follows (amounts are from total gross pay):
up to 62,400 sh annually – 10%
from 62,401 sh – 106,560 sh annually – 14%
from 106,561 sh – 168,000 sh annually – 21%
from 168,001 sh – 240,000 sh annually – 31%
from 240,001 sh – 501,960 sh annually – 34%
from every additional sh – 48%
2) Anyone making annual income which exceeds 800,000 sh will incur an additional 2% tax on the amount over 800,000 sh
Change in Employer’s contribution to Social Security
As part of “the law to reduce the national deficit and change in the burden of taxes”, which was published today – August 13, 2012, a raise in the employer’s contribution towards Social Security has been authorized for the next 3 years, as follows:
From the higher level (on the part of salary over 60% of the average wage)
In 2013 – 6.5%
In 2014 – 7%
In 2015 – 7.5%
The current rate in 2012 is 5.9%.
This does not include employees who are pension-age, receiving a old-age stipend from Social Security or foreign workers or employees under age 18.
