Personal Income Tax

The legal framework governing the taxation of personal income (as well as the income of a few types of unincorporated partnership) is provided by the Income Tax Code (Statute 193). This basic law, which was originally passed in 1961, has been amended many times over the years with sweeping changes being made in 1980. The following discussion incorporates changes made in the law as recently as 6 July 1994.

Personal income is defined in the law in terms of seven categories: commercial earnings, agricultural earnings, wage and salary income, independent professional service income, income from real estate properties, dividend and interest income, and miscellaneous profits and earnings. Specific provisions concerning the taxation of each category of earnings are spelled out in relevant sections of the law.