For the company’s  occasional special payments such as overtime, bonus to the staff,  how are withholding tax calculated?

Panwa: Please see the details as below:

1.Take the special payment then multiply by the time need to pay (per year) to find the amount as if paid for the whole year

2.Take the special payment to calculate refer to no.1 total with the special payment as if paid for the whole year (normal payment) and then calculate less the expenses under Section 42 of the Revenue Code. Calculation of deductible allowances under Section 47 of the Revenue Code and calculate tax according to the criteria under Section 48(1) of the Revenue Code. It will receive the total amount of withholding tax (It is the tax of the extra money and the tax of the money as if paid for the whole year together)

3.Take the tax that calculate from normal yearly income less from no.2 will result in withholding tax.

4.Take the result of no.3 and add it to the amount of withholding tax that is calculated on the income normally paid. The amount earned is the total withholding tax at the time the extra payment is made.

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