What is the deadline for a Chatime developer to provide the official receipt from the authority for the amount of deduction or withholding paid?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) All withholding taxes shall be borne by Developer. That is to say, all payments by Developer must be made without deduction or withholding (including (without limitation) by way of set-off, counterclaim, duty, tax (including goods and services tax, value added tax and other government imposts) or charge) unless Developer is prohibited by law from doing so, in which case Developer must:
- (a) Promptly pay to Franchisor any additional amount necessary to ensure that the net amount received by Franchisor equals the full amount which would have been received by Franchisor if no deduction or withholding had been made;
- (b) Pay to the relevant authority within the period for payment permitted by law the full amount of the deduction or withholding (including the full amount of any deduction or withholding from any additional amount paid under clause 5.4(1)(a));
- (c) Give Franchisor the official receipt from the authority for the amount paid to it within 7 days after Developer receives it; and
- (d) Assist Franchisor with any reasonable requests for information or supporting documents regarding the calculation and/or payment of the amount paid.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, if a developer is required by law to make any deductions or withholdings from payments to Chatime, the developer must provide Chatime with the official receipt from the relevant authority. This receipt must be provided within 7 days after the developer receives it.
This requirement ensures that Chatime receives proper documentation of any legally mandated deductions or withholdings, allowing them to reconcile their accounts and comply with tax regulations. The developer is responsible for all withholding taxes, meaning they must ensure Chatime receives the full amount due, regardless of any deductions.
In practice, this means a Chatime developer needs to have systems in place to track and manage any withholding taxes, promptly pay these to the appropriate authorities, and obtain and forward the official receipt to Chatime within the specified timeframe. Failure to comply with this requirement could result in penalties or other legal issues for the developer.