TAX DECLARATION FORM (TD FORM AU - 1)
A TD Form AU-1 (Code Form) is the prescribed form on which claims are declared. It was designed solely for the purpose of making the appropriate deduction of tax from salary or wages. After the Declaration is made the employee will be issued with a Tax Code Number.
Since this information is necessary for the correct amount of tax to be deducted, each employee, on taking up employment, is required by Law to file a declaration of his deductions and allowances with the Department:
- Within fourteen (14) days from the commencement of employment;
- Within seven (7) days, if there is a change in tax deductions/allowances;
- When required to do so by the Inland Revenue Department.
Where an employee has more than one place of employment or is in receipt of both pension and salary or wages, details of each source of income must be stated separately on the same form.
In such cases, a Code Number, must be submitted to each employer by the employee.
GUIDELINES TO BE FOLLOWED WHEN SUBMITTING A TD FORM AU-1 FOR APPROVAL.
The following documents are required in respect of the under mentioned claims:
a) Mortgage Interest
Mortgage interest statement payable for the relevant income year.
b) Alimony/Maintenance Payments
i. Copy of Court Order or Deed of Separation
ii. This deduction is granted only to a former spouse. It does not refer to nor include common law relationships.
c) Higher Education Allowance
Letter from university verifying full time attendance of individual and proof of related expenditure e.g. tuition paid.
d) Cooperative Society
Statement of shares purchased for the relevant income year.
Where the taxpayer has income from two or more sources, it is advisable that the person come to the Department, in order for guidance to be given to the respective employers, informing them of the amount of PAYE to be deducted.
An individual in receipt of a pension should file a declaration with the person paying the pension. If however, he also receives income from employment, one Declaration should be filed with employer or the person paying the pension.
Where there is doubt concerning any claim or the procedure to be followed, please call and clarify before visiting the Taxpayer Assistance Unit.