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China to tax on early retirement subsidy
February 13, 2011, Sunday
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Online Edition
Online Edition
China will impose tax on the one-off subsidy to people taking early retirement, the State Administration of Taxation (SAT) said today.
The bureau said the early retirement subsidy, which is not tax-free retirement income, should be imposed with personal income tax.
However, the tax will be calculated after the subsidy is divided by the months between the date of the completion of retirement formalities and the corresponding legal retirement date, the bureau said.
The bureau said the early retirement subsidy, which is not tax-free retirement income, should be imposed with personal income tax.
However, the tax will be calculated after the subsidy is divided by the months between the date of the completion of retirement formalities and the corresponding legal retirement date, the bureau said.
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