Since the announcement of the 2023 fiscal budget, besides waiting for the distribution of consumption vouchers, don’t forget about other “sweeteners.” For example, individuals must pay attention to the tax deduction of personal residential rent, and company directors must be especially aware!
After the pandemic, the demand for manpower in various industries has increased. The catering industry, which has always had difficulty in hiring staff, is particularly affected. Some restaurant owners said that they would hire almost anyone who is willing to work because they need more staffs. In the catering industry, it is a common practice for labours to ask payroll paid in cash. Bosses who want to have enough staff will generally cooperate with the arrangement. Although cash payroll is convenient, there is also a chance of entering the gray area of tax evasion.
After deducting all company expenses, the Inland Revenue Department will collect “profits tax” from the company’s net profit. In order to maximize the deductible expense, it is essential to keep supportings properly. The most important thing is to know the following tips!
Filing taxes every year is a citizen’s responsibility, but not everyone is required to pay taxes. Employees are entitled to a basic tax exemption each year. There are also other tax deductions, including medical insurance, pensions, voluntary mandatory MPF contributions, and “family tax exemptions.” What qualifications are required to apply for a tax exemption for supporting parents?
There is a misconception passed down by “predecessors” that if a company is losing money, it can report losses to the tax bureau and avoid tax, thus saving money and time. In fact, even if a company has no profit or even runs at a loss, it can still claim tax deductions.
