Employer Tax Contributions

Tax Type	Rate	Base
Social Security (KPF)	7.5%	Gross monthly salary
Income Tax (PAYE)	Progressive (0-30%)	Taxable income (after deductions)

Filing & Compliance

• PAYE and KPF contributions must be remitted monthly, typically by the 15th day of the following month.
• Employers must submit annual returns summarizing total remuneration and PAYE tax withheld.
• Annual returns are usually due by March 31st of the following year.

In Kiribati, employee tax deductions primarily revolve around mandatory contributions to the Kiribati Provident Fund (KPF) and income tax, with authorized deductions not exceeding one-third of an employee's wages per pay period.

Kiribati Provident Fund (KPF)

Both employers and employees contribute to the KPF, a social security scheme. The employee contribution rate is 7.5% of their salary. Employers also contribute 7.5% of the employee's salary to the fund. These contributions are deducted directly from the employee's wages.

Income Tax (PAYE)

Employees are subject to Pay As You Earn (PAYE) income tax. The rates are progressive, meaning higher earners pay a larger percentage. As of 2025, the rates for residents are:

• 20% on income up to AUD 25,000
• 30% on income between AUD 25,001 and AUD 50,000
• 35% on income above AUD 50,000

Non-residents are taxed at a flat rate of 30% regardless of income level. It is crucial to note that tax regulations can change. Therefore, it's always recommended to consult with a tax advisor or the relevant authorities for the most up-to-date information.

Other Deductions

Other deductions can be made from an employee's salary, provided they are authorized by law and the employee consents. These deductions, combined with KPF contributions and taxes, cannot exceed one-third of the employee's wages for a given pay period. Some examples might include:

• Union dues (if applicable)
• Court-ordered deductions (e.g., child support)
• Loan repayments (with employee consent)

Employer Responsibilities

Employers are legally obligated to deduct the correct amounts for KPF, PAYE, and other authorized deductions. They must also maintain accurate records of all deductions and remit them to the appropriate authorities. Failure to comply with these obligations can result in penalties.

Employee Rights

Employees have the right to receive a payslip detailing all deductions made from their salary. They also have the right to question any discrepancies or unauthorized deductions.

Tax Year and Deadlines

The tax year in Kiribati typically aligns with the calendar year. Deadlines for filing tax returns and remitting payments vary, and it's essential for both employers and employees to adhere to these deadlines to avoid penalties. Specific deadline information can be obtained from the Kiribati Revenue Authority.

Additional Information

For more detailed and up-to-date information, employers and employees can refer to the Kiribati Inland Revenue website or consult with a tax professional. It is essential to stay informed about any changes to tax laws or regulations that may impact deductions.