adminDid you know that one of the obligations of the employer is to issue Employees Tax certificates?
In terms of the Thirteenth Schedule Paragraph 14 of the Income Tax Act (Chapter 23:06), an employer is required to furnish employees with Tax Certificates (Forms P6).
What Information is on a Form P6?
The Form P6 shall contain the following;
Name and Address of Employer
Business Partner Number
Tax Year
Serial Number
Details of the Employee
Total Remuneration Earned
Deductions and Credits
Amounts of Employees’ Tax Withheld
Who Qualifies to be Issued with a Form P6?
All employees whose remuneration was subject to PAYE in the previous year are entitled to be issued with tax certificates (Forms P6) for their records.
The employer is required to issue Forms P6 as follows:-
within 30 days from the end of the relevant year for all employees in service or
within 30 days of terminating employment services for those employees who have left service in the respective tax year or
at any other time specified by the Commissioner.
Forms P6 for those employees who have been employed by the same employer for the full tax year should be marked F.D.S. (Final Deduction System) on the top.
What is a Form P6 used for?
It is used to verify whether PAYE was correctly calculated taking into account all earnings, benefits, allowances and credits due to the employer.
Who should submit Returns of Income (ITF1) and when?
All those employees who:
Terminate employment during the year of assessment;
Change employment during the year;
Work part time for one employer at the same time being fully employed by another employer;
Start employment during the course of the year;
Receive pensions;
Are executors/executrix of deceased estates;
Are in receipt of income which is not subject to PAYE.
Are not on the final deduction system (FDS)
All employees who are required to submit a return will be notified by the Commissioner General by public notice in the press.
The notice will also specify the date by which such returns should be submitted.
It should be noted that:-
An employer may, at the request of the employee or former employee, issue a duplicate employees’ tax certificate but any such duplicate shall be clearly marked as such and should contain the full details of the original certificate.
Any employees’ tax certificate on which appears the name or any trade name of any employer shall, until the contrary is proved, be deemed to have been issued by such employer.
Our valued clients are reminded that the due date for Value Added Tax (VAT) for the month of July 2014 is August 25th 2014.
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