Reported 12 months ago
The National Taxation Bureau of Taipei under the Ministry of Finance announced that receiving severance pay from a company at once is considered as 'retirement income,' thereby qualifying for the fixed tax exemption when receiving retirement income in a lump sum. An individual successfully argued that a portion of the income reported by the former company as salary income was actually severance pay. After clarification and reclassification by the tax bureau, the tax calculation was adjusted accordingly. The distinction between salary income and retirement income is crucial for tax purposes, with salary income being subjected to special deductions, while receiving severance pay as retirement income falls under the fixed tax exemption regulations.
Source: YAHOO