According to tax regulation, for internal retired staff, during the period from the date of becoming an internal retired staff to reaching the statutory age for retirement, the income received from the original employer or the employer from the re-employment, does not belong to tax-exempted retirement salary and shall be levied Individual Income Tax (“IIT”) under item of “payroll and salary”.
Lee & Lee Associates Insights: For re-employed internal retired staff, the income received from the re-employment shall be combined with that from the original employer to calculate IIT.
Relevant Rule: Guoshuifa [1999] No.58 ‘Notice of SAT of individual income tax policy ’
