Exceptions to the principle of compensation exemption.
As above stated principle is that tax-free income is received compensation or redress if their height or rules establish a direct result of the provisions of separate laws or regulations issued under those laws. The legislator introduced in this regard, certain exceptions under which the tax shall be:
a) specified in the labor clearance and compensation for the shortening of the period of notice of termination of employment,
b) severance payments paid pursuant to the provisions of the special conditions for the termination of employment for reasons not related to employees,
c) severance pay and compensation for officials to shorten the notice period remaining in respect of the service,
d) compensation awarded under the provisions of the non-competition,
e) compensation for damage to assets related to the business activity, also resulting from a judgment or court settlement
f) compensation for damage to assets related to the conduct of special branches of agricultural production, the proceeds of which are taxed according to the scale referred to in Art. Paragraph 27. 1 (18% and 32%), or under the conditions referred to in Art. 30c (19% flat tax)
g) claims arising out of contracts or extra-judicial settlements,
h) compensation received in connection with their business activities,
i) compensation for benefits that the taxpayer could have achieved had the damage not occurred.
Received compensation that is not exempt from income tax on individuals must be shown on your tax return fold for a given fiscal year, the position of other sources.
Analyzing the presented list of exemptions and exceptions that make the data compensation is taxable but you will notice that while in the case of natural persons not engaged in economic activity, the principle of compensation is exempt from income tax, whereas in the case of business, the principle the taxation of compensation received in connection with the business. Both are subject to the taxation of compensation for damage to assets related to the business activity (also received in respect of non-life insurance), and other compensation received in connection with their business activities.
