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Internal Revenue Commission - “Your Partner in Nation Building” Document ID: 2014-TPG-P5-02 Effective From: 11 March 2014 Page 1 of 4
INTERNAL REVENUE COMMISSION
TAXPAYER GUIDE
BUSINESS INCOME PAYMENT TAX – REMITTANCE AND
ANNUAL RECONCILIATION FORMS FOR 2013
The Internal Revenue Commission has recently modified the process and stationery for submitting
Business Income Payment Tax (Paying Authority Tax). The new process is a result of extensive analysis
based on feedback received from taxpayers and represents an on-going effort on the part of the IRC to
improve service delivery and reduce compliance costs for taxpayers.
NEW MONTHLY REMITTANCE FORM A new Monthly Remittance form for the Business Income Payment Tax has been issued by the IRC. This
form is called a P5 – “Business Income Payment Tax Remittance Advice Form”, and this replaces any other
monthly forms issued in prior years. You may download a copy of the P5 form from the IRC website at
http://www.irc.gov.pg/tax_forms.html , request a copy by Email at [email protected], or pick up a copy
in person from the IRC office of your choosing. The form may be completed by hand, or completed
electronically.
The traditional, multiple carbon copy form is no longer in use and has been replaced by a much simpler
form in order to make it easier for taxpayers to comply with their obligations.
The new P5 form looks like this:
Internal Revenue Commission - “Your Partner in Nation Building” Document ID: 2014-TPG-P5-02 Effective From: 11 March 2014 Page 2 of 4
Please note that the form no longer requires details of each individual payment made during the month.
Only the totals for the month are required. The detail information now forms part of the annual
reconciliation discussed in the next section.
NEW ANNUAL RECONCILIATION FORM A new 2013 Annual Reconciliation form for the Business Income Payment Tax is being distributed by the
IRC. This form is called a P8 – “Business Income Payment Tax Reconciliation Statement”, and this replaces
any other Annual Reconciliation forms issued in prior years. You may download a copy of the P8 form
from the IRC website at http://www.irc.gov.pg/tax_forms.html , request a copy by Email at
[email protected], or pick up a copy in person from the IRC office of your choosing. The form may be
completed by hand, or completed electronically.
The new P8 form looks like this:
Note: As part of the standardisation of the forms and processes, some forms have been eliminated or
consolidated. The C9 “Annual Income Reporting Statement” has been combined with the P7 “Income Tax
Deduction Certificate” as part of the P8 “Business Income Payment Tax Reconciliation Statement”. There is no
longer a need to wait for C9 and P7 stationery to be sent to you – the new P8 form is available for
Internal Revenue Commission - “Your Partner in Nation Building” Document ID: 2014-TPG-P5-02 Effective From: 11 March 2014 Page 3 of 4
download from the IRC web site (www.irc.gov.pg) or from your nearest IRC office. This updated process
makes the complying with your tax obligations simpler and more streamlined.
The process has changed and the new form covers what used to be included in the old C9 and P7 forms.
The P8 is now used for the annual reconciliation of BPT plus for advising suppliers (business income
payees) of the deductions made on their behalf during the year (which was previously done using the P7
form). i.e. The payer must complete one P8 with every payee listed on it and lodge that with the IRC, plus
complete a P8 for every payee, showing only their data.
Note that when providing the P8 to payees, the form should only include the total of payments made to
that business income payee. The annual reconciliation version of the P8 is sent to the IRC and it contains
the payments made to every payee (with a contract value exceeding 500 kina). From 1 January 2014, that
threshold is increased to 5,000 kina.
COMPLETING THE RECONCILIATION FORM
Here are some tips for completing the Reconciliation Form:
Page 1:
• At the top right-hand side of the form there is a space for the TIN of the withholder. The TIN is the
Taxpayer Identification Number – a nine-digit number that is issued by the IRC to every taxpayer.
TINs are replacing Tax File Numbers (TFNs) in the PNG tax system. One TIN will cover all of your
tax obligations – Salary & Wages Tax, Dividend Withholding Tax, etc. If you have not yet been
issued a TIN, please contact your nearest IRC office to have one issued.
Note: TINs are issued centrally from Revenue Haus in Port Moresby; however the Provincial IRC
offices can receive TIN applications and submit them for processing on your behalf.
• The Business Income Payment Tax Remittances section lists each month of the year and the
amounts that you have remitted to IRC. This is the amount payable for each monthly return
throughout the year. Total (1) is the sum of the twelve months.
• Total (2) shows the total Tax Deductions from the schedule of the payments made for the year
detailed on page 2.
Page 2:
• The Details of Business Income Payment Tax schedule requires the TIN, Name and Address, Gross
Amount and Tax Deducted totals for the whole year. Only one line per person/business is required
and this represents the total amounts paid to the person/business. Do not list each payment made to
the person/business, just the totals for the year. If you do not know/store their TINs or addresses
then this information should be obtained before completing the form.
• Please note that where Total (2) from the schedule of the deductions does not match Total (1) then
your forms do not reconcile for the year and you should review your information and correct any
errors. If your Reconciliation Statement does not balance then a detailed explanation is required.
Internal Revenue Commission - “Your Partner in Nation Building” Document ID: 2014-TPG-P5-02 Effective From: 11 March 2014 Page 4 of 4
• Note that in addition to the P8 that is sent to the IRC, a separate P8 form must be sent to each payee
listed in the table on page 2 of the form – showing only the payments made to that payee.
Page 3:
• Page 3 of the form covers payments made under contracts to payees who provided a Certificate of
Compliance number and so did not have any BPT withheld from their payments. This schedule
replaces the old C9 form, which is no longer in use.
• A copy of the P8 with all contractors listed in the schedules on pages 2 and 3 must be attached to
your annual Income Tax return when it is lodged with the IRC.
SUBMISSION OF SCHEDULE ELECTRONICALLY
The IRC has now made available the opportunity to submit an electronic file of the schedule data. This
enables taxpayers to submit schedule to the IRC in an excel template. The excel template is available from
the IRC and can be submitted via e-mail or on other physical media such as CD or DVD.
Templates for the electronic completion of the schedule extract may be requested by e-mailing
A sample extract from the template looks like this:
The electronic submission can be delivered
• By e-mail to [email protected] (preferred)
• On physical media and either posted or delivered to your local IRC office.
IRC CONTACT DETAILS
For further information on the new process contact:
Arua Naime
322 6714, [email protected]
Christopher Anderson
Oke Millett