Tue, Sep 04, 2018 - Page 12 News List

Ministry plans new tax cuts; 1.49m people to benefit

HIT TO COFFERS:If the Ministry of Finance cuts are implemented, the government would lose about NT$4.256 billion per year in tax revenue

Staff writer, with CNA

The Ministry of Finance is planning to amend the Taxpayer Rights Protection Act (納稅者權利保護法) later this year to introduce tax cuts that are expected to benefit about 1.49 million people when they file their returns in May next year.

In a notice of the draft amendment, the ministry proposed a new category of tax deductions for family expenses, which it said can be used to calculate a non-taxable amount that can be added to the standard deductions.

The ministry’s plan is expected to be hammered out next month, after the 60-day period during which public opinion is solicited.

If the plan is approved, it will take effect in time for the next tax filing period in May and approximately 1.49 million people would see a reduction in taxes, the ministry said.

The act was amended in December last year, raising the standard tax deductions for wage earners from NT$90,000 to NT$120,000 (US$2,930 to US$3,907) and the “special deductions” from annual salaries from NT$128,000 to NT$200,000.

In addition, special deductions were introduced for people with physical or mental disabilities, for those with preschool children, and for tuition, savings and investment.

Basic living expenses are defined as 60 percent of the median rate of the expenditure per person annually and were calculated at NT$166,000 last year.

If the cuts are implemented, the government would lose an estimated NT$4.256 billion per year in revenue.

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