Timor-Leste Tax Tables 2024 - Tax Rates and Thresholds in Timor-Leste

This page contains the tax table information used for the calculation of tax and payroll deductions in Timor-Leste in 2024. These tax tables are used for the tax and payroll calculators published on iCalculator™ TL, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Timor-Leste or would like to add to or suggest amendments to the information herein then please contact us.

Timor-Leste Personal Income Tax Tables in 2024

The Income tax rates and personal allowances in Timor-Leste are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Timor-Leste Tax Calculator 2024.

In Timor-Leste, the specific tax treatment of social security deductions as part of the taxable income calculation can vary, and it's essential to consult current tax laws and regulations for the most accurate information. Generally, in many jurisdictions, social security contributions made by employees are deductible from their gross income before calculating taxable income, potentially reducing the overall tax liability. However, the applicability of this principle in Timor-Leste depends on the evolving tax legislation and the details of the social security system being implemented.

Timor-Leste's approach to social security and payroll deductions is still in the process of development, reflecting its status as a relatively young nation. The country is working towards establishing comprehensive social security systems to provide for its citizens. The framework for social security and payroll deductions encompasses several key components, each designed to fund specific social welfare programs.

Timor-Leste Social Security and Payroll Deduction Rates in 2024

Timor-Leste is actively developing its social security framework to support its citizens through various stages of life and economic challenges. The introduction of social security and payroll deductions is part of the government's effort to build a more inclusive and sustainable future for all Timorese.

This overview provides a theoretical framework based on the types of social security and payroll deductions typically found in developing nations. As Timor-Leste continues to build its social security infrastructure, these elements represent the foundational aspects of what is expected to emerge as a comprehensive system of support for the nation's citizens.

Pension Scheme

The pension scheme in Timor-Leste is designed to provide for the elderly, ensuring they have financial support after retirement. This scheme is funded through contributions from both employees and employers. The goal is to establish a reliable source of income for retirees, reducing dependency on family and helping to maintain a standard of living in old age.

Healthcare Contributions

Healthcare contributions are another critical element, aimed at funding public healthcare services. These contributions ensure that employees have access to healthcare when needed, covering a range of medical services. The system is designed to improve public health outcomes and provide a safety net for medical expenses, contributing to the overall well-being of the population.

Unemployment Benefits

Although still in development, unemployment benefits are a planned component of Timor-Leste’s social security system. Funded by payroll deductions, this program aims to provide temporary financial assistance to individuals who are involuntarily unemployed, helping them to meet their basic needs while they search for new employment.

Work-Related Injury and Disability Insurance

Work-related injury and disability insurance is intended to support employees who suffer from injuries or disabilities due to their job. This insurance helps cover medical expenses and provides financial support during recovery periods, ensuring workers are not left vulnerable due to work-related health issues.

Family and Maternity Benefits

Family and maternity benefits are designed to support employees during significant life events such as childbirth or adoption. These benefits help to alleviate the financial burden during maternity leave and when caring for young children, promoting family well-being and supporting gender equality in the workplace.

Timor-Leste's approach to social security is evolving, with the aim of providing comprehensive coverage that addresses the needs of its diverse population. While the system is still under development, the government's commitment to social welfare promises to lay the foundation for a more secure and prosperous future for all citizens.

The implementation and expansion of social security and payroll deductions are crucial steps in Timor-Leste's journey towards social and economic development. As the country continues to grow, these systems will play a vital role in ensuring the well-being and stability of its workforce and society at large.

Timor-Leste VAT Rates in 2024

VAT rates for Timor-Leste are reviewed annually, you can use the VAT Calculator to calculate VAT due in Timor-Leste or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Historic Tax Tables supported for Timor-Leste

The following tax tables are supported by iCalculator™ TL as part of the suite of free tax tools we provide for Timor-Leste.