Bill to redefine dependents in tax laws

Staff writer, with CNA

Fri, Oct 19, 2012 - Page 13

A bill to revise the definition of dependents in the tax laws cleared a review by the legislature’s Finance Committee yesterday.

The amendment to the Income Tax Act (所得稅法) seeks to allow more flexibility in tax exemption claims by dependents by broadening the definition of the term.

Currently, the law lists dependents as relatives of a taxpayer who are more than 60 years old and who are incapable of earning a living, children under the age of 20 and children over that age who are in school and are being supported by the taxpayer.

In accordance with a fair taxation ruling by the Judicial Yuan last year, the amendment includes relatives aged 20 years and over who are disabled or incapable of earning a living.


The amendment would give institutions, such as hospitals and local tax administrations, the authority to determine whether a relative can be listed in a tax claim as disabled or if they are incapable of earning a living.

In its ruling, the Judicial Yuan said the existing law deters taxpayers from supporting relatives in the 20 to 60 age group who may need help.

Furthermore, one’s ability to earn a living is not necessarily linked to one’s age, the Judicial Yuan said.

The amendment has to pass two other readings before it can be passed into law.