China to tax on early retirement subsidy

0 CommentsPrint E-mail Xinhua, February 13, 2011
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China will impose tax on the one-off subsidy to people taking early retirement, the State Administration of Taxation (SAT) said Sunday.

The SAT 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 SAT said.

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