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  • PAYG when receiving PSI

    Under the Pay as you go (PAYG) withholding rules, you have an obligation to collect tax from payments you make to employees and some businesses so they can meet their end-of-year tax liabilities.

    If your business receives personal services income (PSI) and the PSI rules apply, that income will need to be declared by any individual who performed the services in their individual tax return.

    You will have additional PAYG withholding obligations if the PSI your business received hasn't been promptly paid to each individual who performed the service, as salary or wages.

    If your business has a net PSI loss for an income year, there are no additional PAYG withholding obligations, as there is no income to attribute.

    If you're registered for PAYG instalments, any PSI attributed may affect your instalment income.

    If you're unsure of your circumstances, you can seek professional advice from us or a registered tax professional.

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      Last modified: 30 Mar 2017QC 17515