New income tax rates approved by the Government will come into effect in Tonga from 1 July 2021.
The rates are being introduced to support people during the current economic situation due to prolonged Covid-19 and its negative impact on the economy.
There will be no income tax rate charged for individuals earning $12,000 and less.
An income tax rate of 10% will be charged to people who are earning in the range of $12,001 to $30,000.
Individuals who are earning from $50,001 to $70000 will be charged with a 20% income tax rate.
A new tax rate of 25% will be implemented for people earning $70001 and more.
Source:
Press Release