What PLB is
PLB (productivity linked bonus) is an incentive an airline pays an agency for reaching sales targets over a period. The scheme usually defines the period, the eligible sectors or fare classes, the target and the percentage paid once the target is reached.
Because the bonus depends on reaching the target, the agency does not know the final amount until the period ends and the airline confirms it.
Recording PLB, step by step
- Track sales against the targetUse airline-wise sales reports (PSR) to see progress against each scheme during the period.
- Estimate at the period endIf the target is reached and the amount is reasonably certain, recognise the estimated income in that period, as agreed with your auditor.
- Confirm with the airlineAdjust the estimate to the amount the airline confirms.
- Invoice the airlineRaise a tax invoice for the incentive, with GST where applicable.
- Match the payoutPLB may arrive as an ACM through BSP or as a direct payment. Match it to the invoice.
- Reconcile TDSWhere the airline deducts tax at source, match the deduction with your tax credit statement.
GST and TDS on PLB
PLB is generally treated as consideration for a service the agency supplies to the airline, so GST applies and the agency issues a tax invoice to the airline. Airlines may also deduct tax at source on incentive payments.
Tax rates, thresholds and rules change through notifications and the annual Finance Act. Use this guide to understand the process, and confirm the current position with your chartered accountant before filing.
PLB in SYSTACC
SYSTACC reports PLB and PSR from the same ticket records as the ledgers, so progress against each airline’s target is visible during the period. When the payout arrives as an ACM, it lands in the same BSP reconciliation as the rest of the statement.
