Taxable annual income threshold to be raised to NT$375,000.
By: Light McCandless, Taiwan News, Staff Writer
At the soonest, by 2019, some taxpayers can enjoy tax cuts. Under the Ministry of
Finance (MOF) tax reform program, the threshold for deduction of comprehensive tax will be raised from NT$90,000 to NT$110,000 and the threshold for special salary deductions and for those with physical and mental disability, will be raised from NT$128,000 to NT$180,000.
The increase in the threshold for standard deductions will benefit about 5.17 million or over 84% of households. The special salary threshold increase will benefit around 5.42 million, or over 88% of households; and the increase for physical and mental disability will benefit around 620,000 households.
The long-awaited dividend income tax reform program was also finally released. Minister of Finance, Sheu Yu-jer, recently said that the tax reform was not only for those with dividend income, but also took those who pay tax on their salaries into consideration, so it sought to improve the standard tax deduction, special salary deductions, and special deductions for those with physical and mental disability.