PAYMENT RECEIVED PURSUANT TO A SEPARATION SCHEME
Effective Y/A 2007:
Income tax exemption, where employees are given an option for an early retirement of an employment contract, on condition, such schemes do not expressly or impliedly provide for the employee to be reemployed under any other scheme of employment by the same employer or any other employer.
ACP1967 Sch 6 Para 15(3): In this paragraph,“compensation for loss of employment” shall include any payment made by an employer to an employee of his pursuant to a separation scheme where employees are given an option for an early termination of an employment contract provided that such scheme from which payment was made does not expressly or impliedly provide for the employee to be reemployed under any other scheme of employment by the same or any other employer.
Its really a good informaion about Income tax exemption. where you have option to choose the scheme. Thanks for sharing.
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Hi Jennifer, thank you for reading. Is this exemption applies in Japan Tax Law too?
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