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Regarding the withholding statement written by each business entity for employee’s 2007 Individual Income Tax, please deduct the whole amount of voluntary pension contribution made by a worker from the taxable income according to the new labor pension system to protect employee’s interests.

The Bureau of Labor Insurance requests each business entity that when writing the 2007 "Withholding and Non-withholding Tax Statement", the whole amount of voluntary pension contribution made by a worker from the taxable income according to the new labor pension system during the fiscal year should be deducted to avoid tax overpaid by the worker.

According to Paragraph 3, Article 14 of the Labor Pension Act, the tax withholders should not withhold the voluntary pension contribution within 6% of the worker's monthly wage from the total income of that current year, and which is also exempted from calculated into the total payment of withholding and non-withholding tax statement. 

The Bureau of Labor Insurance also reminds each worker who joined the new labor pension system and had voluntarily contribute for pension in 2007, upon receipt of the 2007 Withholding and Non-withholding Tax Statement from the business entity should check the details whether the said business entity had deducted the voluntary pension contribution from the total payment and the "Voluntary Pension Contribution Amount According to the Labor pension Act" is correct or not.  If the amount was not deducted or incorrect, contact the business entity to file application with the local branch or office of National Tax Administration to make correction in order to protect your interests. 

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Last Update:2008-03-19
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