3.5 Contract gratuities
Contract gratuities, predictable lump sums allowed for under a condition of the contract of employment, sometimes termed as a 'Golden Goodbye' payment, are a common provision within employment contracts in the offshore oil industry. Such gratuities are not deemed to be severance payments and so, do not qualify for the tax exemption.
As a result, they must be taxed according to the following rules:
• 25% flat rate of tax on gratuities of up to TTD 1m
• 30% flat rate of tax on any portion of the contract gratuity exceeding TTD 1m
Unlike severance payments,
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