"There are indeed many modifications in the tax code that came into effect this month," said Me Philippe Volmar Junior, a guest on the Magik Panel, Radio Magik9, earlier this week. He specifically referred to the new tax schedule for taxable income (IRI) for individuals. This schedule is divided into brackets. "Previously, the basic bracket was set at 60,000 gourdes on which there were no deductions. Today, this bracket is established at 360,000 gourdes. There is a zero % deduction expected," declared Philippe Volmar Junior. <\/p>

In the new tax code, the brackets are thus segmented: the first income bracket ranges from one (1) gourde to 360,000 gourdes. For employees whose annual income falls within this range, the state does not impose deductions. For the second income bracket, ranging from 360,001 gourdes to 540,000 gourdes, the state collects 12%. A deduction of 18% is expected if the income bracket, the third, falls between 540,001 gourdes to 1,080,000 gourdes. If the income exceeds the limits of 1,080,001 gourdes to 2,160,000 gourdes, the fourth, a tax deduction of 25% is provided in the new tax code. Finally, for the fifth income bracket above 2,160,000 gourdes, the deduction is 30%. <\/p>

Regarding taxable income (IRI), Me Philippe Volmar Junior further explained how the state will perform the calculations for deductions. "The schedule is progressive. Therefore, one must not make an error in calculating the annual income to convince oneself to be in one of the five brackets. When proceeding with the calculation, we will determine how many income brackets the annual salary falls into. If the annual salary, after subtracting the upper amount of a bracket, lands in the next bracket, we will add the respective percentages of the brackets and divide the result by 12 to find the amount to be received each month," explained the lawyer, emphasizing that there will now be fewer taxes deducted from employees' salaries. One of the taxes that the state is waiving on employees' salaries is the local government tax known as the CFGDCT. <\/p>

As for employers, they are obligated to withhold the taxes and levies including income tax, emergency fund, and CAS, on behalf of the treasury. This is not a new thing. However, the employer must avoid delaying the payment of withheld amounts or not withholding them at all under penalty of fines and sanctions, says Me Philippe Volmar Junior. "Employers must remit, during the next month, the taxes and levies withheld from their employees, from the 1st to the 15th. It is also during this period that they are called to pay the payroll tax," Mr. Volmar pointed out, stressing that the penalties are becoming stricter and could negatively impact revenue figures. <\/p>

Me Philippe Volmar Junior also addressed specific questions regarding self-employed workers, new employers, and individuals exempt from the IRI. "Under labor law, a self-employed worker is not considered an employee. The self-employed worker is required to file their final tax declaration with the DGI themselves. As for new employers, that is, those hired in August and September, they are not subject to the tax code which cannot be retroactive," he stated. <\/p>

Furthermore, Mr. Volmar informed that the 15% deduction included in the rectified budget for 2025-2026, put on hold by the Ministry of Economy and Finance, is now in effect as it is part of the tax code. <\/p>