Subject: UN: East Timor introduces tax on wages and income

UN Newservice

East Timor introduces tax on wages and income

14 December ­ The head of the United Nations Transitional Administration in East Timor (UNTAET) today signed an amendment to a previously approved regulation, introducing a tax on wages and income.

The amendment signed by Sergio Vieira de Mello will introduce on 1 January 2001 a tax on wages and new arrangements for a business income tax, as well as amend the taxes applying to imports.

Under the amended regulation, persons earning more than $100 per month will pay 10 per cent of their income above $100 per month, while those earning above $650 will pay 30 per cent of their wages. The tax will not apply to people who earn less than $100 per month.

All revenue collected will go to the East Timor budget.

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