In general High Commissions, Embassies and Diplomatic missions are not obliged to pay any tax, as covered under The Diplomatic and Consular Immunities and Privileges Act. In this regards those bodies are not bound to operate PAYE schemes. Although some other bodies opt to operate in order to keep their records properly and help their employees to avoid wasting time in complying with their tax affairs so as to enable them concentrate with their duties at their offices.

Therefore, if a local employee is employed in these institutions, and the institutions opt not to operate PAYE system, he shall do the following:

• register as taxpayers by acquiring Taxpayer Identification Number (TIN).
• File a statement of estimated income at the beginning of the year based on his monthly income.
• file final returns.

Taxation of nonresident employees.

For nonresident employees (e.g. temporary employees from abroad) tax is withheld at a flat rate of 15% of the gross income from employment.  This is effectively a final withholding and the amount withheld satisfies the employee’s income tax liability with respect to the employment