Exemption on remuneration received upon termination of employment from payment of Individual Income Tax (IIT)

 

Administration of Local Taxation of Shenzhen Municipality
Local Tax Issue [2005] 310
25 May 2005

The one-off and final remuneration (including financial subsidy, living subsidy and other subsidies) received by an employee upon termination of employment will be exempted from payment of IIT. The amount of exemption is limited to three times of the area's average annual income in the previous year. As the 2004 Shenzhen average annual income reported by the Shenzhen Statistical Department is RMB31,928, the maximum exempted amount for individual in Shenzhen is RMB96,000. Any related amount exceeding RMB96,000 will be subjected to IIT.
解除勞動關係征免個人所得稅的標準調整
 

深圳市地方稅務局
地稅發【2005】310
2005-5-25

根據深的規定，個人因與用人單位解除勞動關係而取得的一次性補償收入（包括用人單位發放的經濟補償金、生活補助費和其他補助費）在當地上年職工平均工資3倍數額以內的部分，免征個人所得稅。依據規定，深圳市2004年度在崗職工年平均工資?31928元，因此，該市免稅標準調整?9.6萬元（含9.6萬元）。超過9.6萬元的部分，仍須按照相關規定計算徵收個人所得稅。