Withholding tax reporting
Taxpayers must submit a report to the tax authorities of the vendors that have received
payments and the tax withholding that was performed. Typically, these vendors are classified
by vendor type and transaction type. Taxpayers must also provide each vendor with a report or
letter confirming the tax that has been withheld in the period.
Australia specifics
The Australian requirement is to report monthly the amount deducted and gross value on the GST return.
A Taxable Payments Annual Report (TPAR) must be submitted annually by 28 August if a business is providing these services or is a government entity:
- Building and construction services
- Cleaning services
- Courier services
- Road freight services
- Information technology (IT) services
- Security, investigation, or surveillance services
The TPAR shows the details of payments that are made to contractors for providing services. Some government entities also must report the receipt of grant money in a TPAR.