Working Permit

Company A ( GST registered company) had appointed an agent(GST registered company) to renew the working permit for foreign employee. Now the agent charge us permit renewal fees with GST.

Question:

1) Should the agent charge us GST?
2) Should Company A claim the GST?
3) What is the tax code for this transaction?

Asked on March 1, 2018 2018-03-01 01:30:03 Business (商家)
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4 Answer(s)

1) Should the agent charge us GST?  Yes because the agent is offering their services to you.

2) Should Company A claim the GST?  Company can claim input tax credit as long as there is a full tax invoice and it is in the course or for the furtherance of business.

3) What is the tax code for this transaction?  If there is GST @ 6% charged then the tax code is TX otherwise OP.

Answered on March 1, 2018. 2018-03-01 03:35:30

Thanks for reply!!

on March 1, 2018. 2018-03-01 04:48:14
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Lets say the Company A deduct the foreign employee’s  salary to cover up the permit fee,

Question:

1) Do Company A still able to claim the tax from the Agent?
2) Do the permit renewal fees consider as employee benefits and subject to gift rules?
3) If Question 2 apply, what is the gst tax code for that? DS?

Thanks.

Answered on March 1, 2018. 2018-03-01 07:18:27
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1) Do Company A still able to claim the tax from the Agent?  Do you mean Income Tax?

2) Do the permit renewal fees consider as employee benefits and subject to gift rules?  As you aware that w.e.f. 1/1/2018 the employer is not allowed to deduct the permit levy fee from the foreign workers.  Thus this will be treated as a benefit-in-kind to them and must be added into their Form EA at the end of the calendar year.

3) If Question 2 apply, what is the gst tax code for that? DS?  Tax code is OP.

Answered on March 1, 2018. 2018-03-01 08:35:53

2) Do the permit renewal fees consider as employee benefits and subject to gift rules?  As you aware that w.e.f. 1/1/2018 the employer is not allowed to deduct the permit levy fee from the foreign workers.  Thus this will be treated as a benefit-in-kind to them and must be added into their Form EA at the end of the calendar year.

Does it meant the Company have to bear all the permit cost and not allowed to deduct as levy fee from foreign workers? Thanks for info!!.

3) If treated as benefit in kind, and we received the tax invoice from the agent who help us to renew the permit and charge us the 6% GST, the tax code will be TX , the Company also able to claim tax, am i correct?

on March 1, 2018. 2018-03-01 09:08:04
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2) Yes.  It is mandatory w.e.f. from 1/1/2018 for the employer to bear all the work permit levy fee and not allowed to deduct from the foreign workers wages / salary.  Sorry to say it will be an additional / extra cost to your company.

3) Yes you are correct.  You can claim input tax credit on the GST charged by your agent.

Answered on March 2, 2018. 2018-03-02 00:16:39
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