Hi ,
My Company is a vendor of IT product , and my company is going to provide sales commission (in the form of supermarket gifftcard) to our resellers' (reseller has multiple vendor for the same category of product) individual employee after the reseller's employee has successfully sell our brand to end customer.
It's like there are a few different brands of computer in JB HiFIi, and one of the computer vendor** wants to give giftcard to JB HiFI sales person if he/she can sell 10 **computer sin a month. The incentive is not lot, we are talking about 1-2% of the product , depends on the individual sales ability, it can be more than $300/year .
I want to ask as the incentive provider, does my company need to withhold tax when providing the incentive ? Are the cost of purchasing those giftcards tax deductible for my company? Is there FBT issue involved here?
Thank you
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