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Fiji Time: 9:15 PM on Tuesday 2 September

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Pay correct tax

Timoci Vula
Friday, November 23, 2012

FIJI'S Revenue and Customs Authority (FRCA) says the government's announcement of Pay as You Earn (PAYE) as a final tax from next year aimed to ensure taxpayers paid the correct tax.

FRCA chief executive officer Jitoko Tikolevu said the main objective of the system was to ensure that taxpayers paid the correct tax and there was no refund or liability. He said that taxpayers would still have to pay all other taxes despite the introduction of PAYE as final tax.

"While employees would still have to lodge their tax return form (Form S) in 2013 because of the 2012 income tax year, there will be no need to do so from 2014 however, exceptions are for those who received redundancy packages or received lump sum payments in 2013," Mr Tikolevu said.

"They will still have to file their returns in 2014. All other types of tax returns such Form B (sole traders, partnerships), Form C (companies, partnerships, trusts or estates) and Form V (all types of businesses registered under VAT) will not be affected and should be lodged accordingly," he said.

The authority advised that employees were required to fill the Employee Tax Code Declaration from by December 15 this year and requirements of the form include Tax Identification Number (TIN), personal details and a tax code indicating whether it's taxpayer's primary or secondary employment.

Mr Tikolevu said from next year, taxpayers would not be able to claim any allowances such as child allowance, marital allowance, Fiji National Provident Fund (FNPF), and insurance and elderly dependents.

"For employees who are earning other sources of income such as rental income will still be required to lodge an annual business return (Form B)," he said.

Mr Tikolevu urged all employers to ensure they were deducting the correct amount of PAYE by making sure that all employees provided their Tax Code Declaration Form as well as their Tax Identification Number.

He reminded employers that one of the new requirements was the monthly submission of the Employer Monthly Schedule (EMS) to FRCA.

He warned all employees to provide Tax Code Declaration or provide a TIN to avoid being taxed at the maximum rate of 20 per cent.


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