Practice sharing II

Employee compensation tax declaration

At the beginning of April of each year, the Inland Revenue Department will issue a unified employee salary statement to employers so that they can report the amount of salary paid by employees from April 1 of the previous year to March 31 of the year in which the tax statement was issued.

Declared amount

The declared amount is the salary remuneration without deduction of MPF during the above period, not the actually paid amount (the money actually received by employees).

Those that need to be declared

Take 2022 for example, the annual salary is more than $132000 orDirectors, married employees and part-time persons known to do more than one job, regardless of salary
As for the remuneration of directors of the reporting company, it will be adjusted according to the tax relief measures of the financial forecast of the year.
Of course, it is understandable that in some industries where the turnover rate of employees is relatively high, it is difficult to declare all employees one by one.

Reporting expenses of persons other than employees

Some companies receive 56M forms in addition to employee tax returns.

Who wants to declare

If the company pays more than $25000 per year to local people other than employees (including unlimited companies but excluding limited companies), you need to fill in Form 56M. The amount paid to the subcontractor every year is more than $200,000, which also needs to be reported.
Generally speaking, employees are required to complete and return the tax return 1 month after the date of issue. If you are late in sorting out the data, you can apply to the Tax Bureau for an extension.
The Inland Revenue Department assesses whether it is necessary to issue an individual tax return to an employee through the employer’s declaration of remuneration. Of course, if the income declared by the individual is different from that declared by the company after receiving the tax form, the tax bureau will inquire the relevant person/company.