◎ Performing their duties because of injury employees from the employer payment of subsidy, whether it should apply the withholding tax?
Ministry of Finance Taipei IRS said the company asked employees receiving regular duties due to injury, these payments from the grant of the company, whether the company should apply for income tax withholding?
Bureau shows that profit-seeking enterprise employee medical expenses or other payment of subsidies, the Department of profit-seeking enterprise employees belong to the nature of the subsidies, the provisions of paragraph 2 Category 3 in accordance with Article 14 of the Income Tax Act, paragraph 1, belongs to the wages in various a subsidy of employee payroll withholding income tax should be merged. But labor due to occupational accidents and injuries, medical expenses required to compensate the Company in accordance with the Labor Standards Law Article 59, paragraph 1, and labor suffered due to an occupational accident, can not work in health care, the employer according to the Labor Standards Law Article 59 (2) of the preceding paragraph, the amount of their original paychecks, the payment of compensation, damages belong to nature, the workers get compensation, may, based on the income tax Act section 4, paragraph 1, paragraph 3, exempt from income tax.
Supplementary council, as a result of labor suffered an occupational accident, diagnosed by the hospital for the loss of former employment validation capability, the employer in accordance with the Labor Standards Law Article 59, paragraph 2, but the book provides a lump sum compensation of 40 months of average wage, the same system by way of damages nature and may be exempt from income tax.
Reminded the council that when the employer to pay compensation for the above-mentioned tax exempt, not required to apply for income tax withholding and reporting matters, belong to the non-owner employees according to the law should be borne medical expenses, these payments and so on, then it is the nature of subsidies, should be included staff salaries taxable income.
