Income derived from dependent personal services is subject to the income tax. This income comprises such income from all kinds of employment in both public and private sector as salaries and wages, as well as associated supplementary income such as allowances, bonuses, anniversary gifts, gratuities, commissions, premiums, compensations and other wage and salary related remunerations including benefits in kind at market value.
In determining taxable amount of salaries and wages, the following expenditures are allowed to be deducted from gross amount:
– Legal deduction made according to various laws or regulations,
– Payments made for pensions,
– Payments made for various insurances,
– Payments made for labor union membership.
Source: Revenue Administration
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