Thu, Oct 04, 2007 - Page 12 News List

Tax break amendment awaits approval

By Jimmy Chuang  /  STAFF REPORTER

The Cabinet yesterday proposed a tax measure that would see most white-collar employees pay less income tax.

Premier Chang Chun-hsiung (張俊雄) introduced an amendment to the Income Tax Law (所得稅法) that would see most nine-to-five white-collar workers enjoy a NT$4,000 increase in tax deductible expenses.

"Our goal is to reduce the tax burden placed on the working population," Chang said.

Chang said the amendment would increase the "special deductible" category from NT$78,000 to NT$82,000. The premier said that the amendment would be submitted to the legislature for approval as soon as possible and he hoped that lawmakers would prioritize the amendment and pass it quickly.

Chang said that the government had promised not to make major changes to the current tax mechanism in the amendment. Reducing the tax burden of the majority of taxpayers is the priority, he said.

The amendment also stipulates that regular donations will be tax free, except for those made in cash.

"The new amendment will make it harder for people to avoid taxes by making fake donations," Chang said.

Another proposed change concerns deductible education fees. The limit of NT$25,000 per household will increase to NT$25,000 per college-aged child per family.

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