COMPENSATORY BENEFITS AND TAX SYSTEM




The arrangements for the provision of compensatory depends on the terms of payment laid down by the judges. If the benefit takes the form of a capital sum paid at once or over a period of less than twelve months, the beneficiary has nothing to declare. On the other hand, if the benefit is settled by payment of an annuity or a capital payment is being staggered over a period of twelve months to eight years, it is taxable.

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