Employer Tax Contributions

Tax Type	Rate	Base
Corporate Income Tax	20%	Taxable Income
Social Security (Employer)	9%	Employee's Gross Salary
Vocational Training	1%	Employee's Salary
Sales Tax (VAT)	5% (Standard)	Value of Goods/Services

Filing & Compliance

• Employers must withhold income tax from employee salaries and remit monthly.
• Monthly payroll tax returns and social security contributions are required.
• Annual tax returns consolidate monthly withholdings.

Income Tax Brackets

Income Range (YER)	Tax Rate
Up to 120,000	0%
120,000.01 - 240,000.00	10%
240,000.01 and above	15%
Non-residents (flat rate)	20%

Employee Contributions

Deduction Type	Rate	Cap
Social Security	6% of gross salary	YER 65,000 (monthly)

Personal Allowances

• Monthly exemption limit of YER 10,000.
• Social security contributions are deductible.
• Allowances for transportation and representation, up to a combined maximum with social security contributions of YER 65,000.