These pages contain information about the Final Settlement System (FSS). The Inland Revenue upgraded the Pay As You Earn (PAYE) to a Final Settlement System in January 1998.

The Final Settlement System is a tax deduction methodology designed to produce accurate tax deductions from emoluments. This methodology ensures that the correct amount of tax is deducted from gross emoluments as they are received thus reducing the incidence of large refunds and tax bills arising from end of year tax assessments.

The FSS legislation was updated with the introduction of the Fringe Benefits Rules during 2001. Fringe Benefits Guidelines may be downloaded from here. This site also contains an online Car Price Guidelines application.

Employers who employ ten (10) or more employees have to use the FSS Tax Deduction method. The FSS Tax Deduction formula is usually incorporated into the payroll software.

Those employers with less than ten employees may still apply the FSS Tax Deduction method by downloading the FSS-FBT Spreadsheet Tax Calculator from here.

This page also contains information about the legislation updates on the Fringe Benefits published in January 2002 and the notice issued to Employers also during January 2002.