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  • Writer's pictureThomas Tsang

Waiver of director salary

For SME and owner managed, it is quite common for director to waive his own salary in order to improve the performance. When the director do this after year end date, we need to consider if it is an event after the year end or just a transaction in subsequent year. If the salary had been paid months out of the normal payroll and CFP had been contributed monthly, it should be considered as completed transaction without any further condition.


The paid salary cannot be waived after the salary transaction was completed.

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