Most employers across the globe provide pension benefits to their employees. This may be on account of obligations imposed by statutory requirements or a voluntary employee welfare initiative.
Pension plans can be private or government-subscribed plans with contributions by the employer and employee or only employer-funded plans. While most plans extend the annuity benefit to employees after their retirement, some schemes may permit a lump sum payout option. Though the type of plans and their benefits may vary, one thing is certain: taxation on receipt of pension. However, the tax treatment for overseas pensions may differ depending on the residential status of the recipient and the place of accrual and receipt of pension.