As the tax season approaches, the Labor Insurance Bureau reminds workers that when they voluntarily contribute to their retirement pension within the 6% limit of their monthly salary, companies must deduct this amount from the total salary reported for tax purposes to avoid overpayment. As of the end of October last year, 1,183,965 workers were under the new labor retirement system.

The Bureau advises that if any voluntary retirement contributions were made in fiscal year 113, workers must confirm that these amounts are deducted from their total salary when filing this year. If they find errors or omissions, they should promptly contact their employer or local tax bureau for corrections.

To encourage voluntary contributions, Article 14, Paragraph 3 of the Labor Retirement Pension Act states that amounts contributed voluntarily within the 6% limit are not included in taxable income. For instance, if in the fiscal year 113 a worker's monthly salary is NT$45,000 and their year-end bonus is for two months, resulting in an annual total of NT$630,000, the voluntary contribution would amount to NT$32,976, leading to a total salary report of NT$597,024.