Payroll Tax 

Payroll Tax is a mandatory tax imposed on employers and employees, based on employee wages and salaries. It funds government programs such as social security, healthcare, unemployment insurance, and pensions. 

There are typically two types: 

• Employer Payroll Tax: Paid by the company based on each employee’s earnings. 

• Employee Payroll Tax: Deducted directly from an employee’s paycheck. 

In the UAE and similar jurisdictions, while there might be no personal income tax, payroll-related levies could include social insurance, end-of-service benefits, and contributions for expatriates or GCC nationals as per local labor laws.