PITA Amendment 2011: Implementation and Matters Arising

The Personal Income Tax (Amendment) Act 2011 was officially gazetted on Tuesday 31 January 2012 with an effective date of 14 June 2011. Many employers are yet to commence implementation while some have commenced but are yet to complete the process, only a few have fully implemented. Regardless of where you are on the implementation phase, there are a number of issues arising from implementation that are likely to affect you.

Generally employee benefits are "all forms of consideration given by an entity in exchange for service rendered by employees" including short-term benefits such as wages, salaries, holiday pay, sick leave and bonuses; long-term benefits such as long-term incentive plans and long-service awards; termination benefits such as redundancy payments; and post-employment benefits such as pensions and postretirement medical insurance.