Tax Collection Methods Flashcards
1
Q
What does Rule (3) state?
A
2
Q
When and why was withholding tax legislation introduced?
A
3
Q
What are advance taxes?
A
These are taxes collected through withholding tax collection methods.
4
Q
Identify the various tax collection methods in Malawi?
A
- Pay as you earn P.A.Y.E
- Withholding tax
- Non-resident tax
5
Q
Financial / Tax context
What does withholding mean?
A
The amount of money an employer deducts from an employee’s paycheck for taxes before paying them
6
Q
Where does withholding of taxes apply?
A
Wherever any person is due to make a payment to another person
He is supposed to retain part of it and submit it to the tax authorities
7
Q
How is Income tax collected?
A
Through withholding tax collection methods.
