director's fees is paid by company is gst applicable
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5,550 views
3 replies
Hi @karan02932
Directors are generally entitled to a director fee for compensation of services performed as a company director. The director is entitled to the fee instead of a salary if they are not also an employee and satisfy certain procedural requirements.
When a company pays its directors a director fee, they would not charge them GST.
Companies paying their directors a fee will withholding tax from the payment as part of their PAYG withholding obligations
Our community page has a member post Director Fees. The response from our community support officer explaining the different payments a director can received is fantastic. Well worth the read.
All replies
Hi @karan02932
Directors are generally entitled to a director fee for compensation of services performed as a company director. The director is entitled to the fee instead of a salary if they are not also an employee and satisfy certain procedural requirements.
When a company pays its directors a director fee, they would not charge them GST.
Companies paying their directors a fee will withholding tax from the payment as part of their PAYG withholding obligations
Our community page has a member post Director Fees. The response from our community support officer explaining the different payments a director can received is fantastic. Well worth the read.
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