What Commission-Paying Organisations Should Do If They Receive a Notice from IRAS
If your organisation makes payments to commission agents who are not employees (such as real estate agents, insurance agents, financial advisors, multi-level marketing agents, or remisiers), you may have received a notice from IRAS.
Starting from the Year of Assessment (YA) 2024, all commission-paying organisations are legally required to collect, retain, and submit the identification and income details of their commission agents (including non-individuals) if they have received a notice from IRAS.
This requirement helps simplify the tax compliance process for commission agents, as their income information will be pre-filled in their tax returns. It also ensures greater accuracy in your organisation’s records, reducing the risk of disputes with commission agents regarding their income, and helps you comply with IRAS’ record-keeping requirements for your expenditure.
In the current tax season, approximately 650 commission-paying organisations have already submitted their commission agents’ income information to IRAS via the e-Submission system. Ahead of the next tax season, IRAS has issued notices to newly identified commission-paying intermediaries, instructing them to collect and retain their commission agents’ identification and income details.
For assistance with this process, you can reach out to WLP, who can provide expert guidance and support in managing your organisation’s compliance with IRAS requirements.