I received retirement allowance from a company I resigned for for years of service.
My understanding is there is special tax treatment for this (around ~20%) but you have to fill in some form when resigning. I dont remember the form it was almost a couple months ago but I believe I did it.
In any case, the tax rate I am paying is ~34.6% when you count the NET of what I received and the GROSS of what I was entitled to.
I looked at the sheet which I received in the mail – it just shows the gross amount paid to me and the net. There is no explanation of the taxation or anything.
Can anyone help explain this?
by lemondropfizz
4 comments
How many years did you work there? Did you mean “four years”?
How much was the gross amount?
Were you a director at the company?
It might be correct if the amount you received was large, since the number of years you worked was quite few, making the deduction small.
Either way, all can be rectified with a tax return.
Were you issued a separate ‘gensen’ specific to this 退職金?
Can you clarify this, “the tax rate I am paying is ~34.6% when you count the NET of what I received and the GROSS of what I was entitled to.”? I believe the tax rate on the retirement allowance would not come much higher than 20% if then process whas handled correctly.
You can double check what the net amount you should have received by entering it on calculation website such as this https://keisan.site/exec/system/1292387069#google_vignette
If the company indeed made a mistake and cannot rectify it themselves, you can always file kakutei shinkoku, and get refund on the adjusted amount
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