The Inland Revenue Division (IRD) of the Ministry of Finance and Energy, hereby reminds the general public that in accordance with the Income Tax Amendment Act 2013, Cap. 149 “effective from 1 January 2013, any payment received as severance, unemployment compensation or termination pay, by an employee who, as a result of administrative downsizing, is terminated, laid off, fired or displaced from his or her employment”, is exempted from paying Income Tax.
The Act further states, “Provided that all income other than the payments referred to above, earned subsequent to the date of severance from 1 January 2013, shall not be exempted from Income Tax in accordance with provisions of this Act”.
The Inland Revenue Division encourages anyone who may have questions on this matter to contact the Division at 440-3556/435-6945 or email at [email protected].
The Division looks forward to a continued partnership in 2016, with employers and the taxpaying public as it strives to improve compliance that will ultimately contribute to the social and economic well-being of all citizens.
Ministry of Finance & Energy