Wage Income Tax

Wage Income Tax

This tax is deducted from the wages paid to employees and is paid to the Timor-Leste Revenue Service by the employer.

Employers are responsible for providing information to employees about Wage Income Tax deducted from employee wages.

Employees should request this information from their employer at the end of each tax year if required or upon termination of employment.


The amount of wage income tax payable for wages of residents of Timor-Leste can be calculated from this table:

Monthly taxable wageIncome tax rate
0 – $5000%
More than $50010% of the amount over $500

A resident is a person who is

  • present in Timor-Leste for a period of, or periods amounting in total to, one hundred and eighty-three (183) days in any twelve month period that starts or ends during the year, unless the person’s permanent place of abode is not in Timor-Leste, or
  • an employee of the Government of the Democratic Republic of Timor-Leste posted abroad at any time during the year.


Wages paid to employees who are non-residents of Timor-Leste are taxed at a flat rate of 10% of the total monthly salary.

There is no tax free threshold for non-residents.

How to Pay Wage Income Tax

Wage Income Tax is paid monthly.

The tax is to be paid by the 15th day of the month after the month in which the Wage Income Tax was deducted from employee wages. For example, wage tax deducted in the month of January will be paid, on the January monthly taxes form, no later than the 15 February. See How to pay taxes.Employers are required to complete 3 copies of the Monthly Taxes Form and to deliver the forms and the deducted Wage Income Tax (and any other tax payments) to a branch of the Banco Nacional Ultramarino (BNU). See How to pay taxes for further details.

Employer Wage Income Tax Form

If you paid wages to any of your employees for all or part of the year, you must submit an annual Employer Wage Income Tax Withholding Form.

Complete this form at the end of the financial year and after any deductions for the last payment period have been paid.

This form, together with any payment, is due on 31 March following the end of the Tax Year. If this day falls on a weekend or a public holiday, the form and payment are due on the next business day.

If you have a payment to make, present 3 copies of the form with payment at a branch of the BNU. See How to pay taxes for further details.