According to the regulations in Article 14 of the Income Tax Act, the tax related regulations for Labor pension during contribution period and receiving are described in the followings:
- Contribution Period: If a labor voluntarily contributes pension according to the regulations in Labor Pension Act and the contribution is within 6% of monthly salary, then the pension contribution is not included in taxable salary for income tax.
- After receive Labor Pension: For the pension from voluntary contribution which is not included in annual taxable salary and its interest (revenue) and the pension from employer contribution and its interest which exceed the tax exemption amount of retirement income are retirement income and should be included in the consolidated income tax return.
Note: Tax Exemption Standard is based on the announcement by Ministry of Finance.