National Taxation Bureau of Kaohsiung, Ministry of Finance indicated that Legislative Yuan passed the third reading of amendments to Article 7 of Act Governing Retirement, Severance and Bereavement Compensation for Civil Servants; Article 29 of Act Military Service for Officers and Non-commissioned Officers of the Armed Forces; Article 8 of Act Governing Retirement, Severance, and Bereavement Compensation for the Teaching and Other Staff Members of Public Schools; Article 5 of Act Governing the Retirement and Consolation Payment to Political Appointee; and Paragraph 1 of Article 9 of Act for Public Service Pension Fund on December 28, 2021. According to the amendments, the public service pension fund paid or voluntary pension contributed by military servants, civil servants, teachers and political appointees according to the aforementioned regulations will be deducted from the employee's taxable salary; and such amendments will retroactive effect on January 1, 2021.
The Taxation Bureau further explained that, when filing the''Withholding and Non-withholding Tax Statement''for military servants, civil servants, teachers and political appointees' salary of 2021, tax withholders should exclude public service pension fund or voluntary pension from the field of ''Total Amount Paid''(i.e., the salary minus the amount paid for public service pension fund or contributed to voluntary pension). With respect to the amount paid for public service pension fund or contributed to voluntary pension, there is no need to fill it in the field of ''Amount of voluntary pension withheld according to Labor Pension Act or Act Governing Retirement, Severance, and Bereavement Compensation for the Teaching and Other Staff Members of Schools'' on the withholding and non-withholding tax statement.
The Taxation Bureau reminded that tax withholders who failed to exclude the public service pension fund or voluntary pension and resulted in an overpayment did not need to apply for amendment or tax refund. Instead, the tax withholder needs to file the ''Withholding and Non-withholding Tax Statement'' according to the actual amount of withholding tax before the filing deadline; and the taxpayer will deduct or return the amount when filing the individual income tax of 2021 in May 2022.
Besides, with respect to the pension that is not counted as taxpayer's taxable salary, it shall be determined as pension income as prescribed in Paragraph 1 of Article 14 of Income Tax Act; and the provision governing fixed exemption is applicable. The payment agency will calculate the pension income and fill in the ''Withholding and Non-withholding Tax Statement'' for filing.
The Bureau expressed that, as the aforementioned amendments will retroactive effect on January 1, 2021, tax withholders should calculate taxpayer's taxable salary and fill in the ''Withholding and Non-withholding Tax Statement'' accurately according to amended provisions. Tax withholders are also suggested to use the e-filing service and file the statement before the filing deadline (February 7, 2022) to avoid penalty derived from a late filing.
Contact: Mr. Cheng, Revenue officer of the Second Examination Division
TEL: 07-7256600ext.7253