This update was first published in the April 2012 China edition of Accounting and Business magazine.
On 27 January 2012, the Inland Revenue Board (IRB) issued Public Ruling (PR) No. 1/2012: Compensation for Loss of Employment. This PR, which is effective from year of assessment 2012 and subsequent years of assessment, provides an explanation on the characterisation of lump-sum payments received by employees on termination of employment as compensation for loss of employment and the related tax treatment pertaining to that compensation.
Joseph Alfred, policy and technical adviser, ACCA Singapore