Some taxpayers will enjoy a cut in their payments next year, Minister of Finance Ho Chih-chin (何志欽) told the legislature yesterday, with low earners likely to benefit the most.
Because the cumulative increase in the consumer price index's (CPI) annual growth rate has reached 10.02 percent since 1997 -- the last time the personal income tax ranges were revised -- the finance ministry is bound by law to increase the income ranges.
"The ministry will kick-start a revision to the income ranges for personal income taxation, beginning Jan. 1 at the earliest, once the Directorate-General of Budget, Accounting and Statistics (
Once the new revision is implemented, high-income taxpayers with annual earnings of between NT$3.71 million (US$115,000) and NT$4.09 million will see approximately a 10 percent cut in their payments.
The 40 percent tax rate will be imposed on wage-earners with annual incomes of over NT$4.09 million -- a 10 percent increase from the current level of NT$3.72 million.
The 30 percent tax rate will be imposed on those earning between NT$2.18 million and NT$4.09 million -- up from the current range of NT$1.98 million to NT$3.72 million.
The 21 percent tax rate, which is currently imposed on those earning between NT$990,000 and NT$1.98 million, will be imposed on those earning between NT$1.09 million and NT$2.18 million as of next year.
Taxpayers who earn less than NT$410,000 -- up from the current NT$370,000 -- will pay the lowest tax rate of 6 percent.
Taxpayers who earn between NT$410,000 and NT$1.09 million -- up from the current range between NT$370,000 and NT$990,000 -- will pay a rate of 13 percent next year.
The monthly CPI averaged 105.24 points in the year ending last month, which represents a 10.02 percent increase from the monthly average between November 1995 and October 1996, Ho said.
As the monthly averaged CPI saw a less than 3 percent increase from 12 months ago -- when the deductibles were last revised -- no adjustment will be made to them, Ho said.