The legislature yesterday approved revisions to tax deduction rules that allow taxpayers to claim dependent exemptions for non-lineal relatives and their family members, as well as non-relatives with whom they live, without age limit.
Under the Income Tax Act (所得稅法), taxpayers’ non-lineal relatives, their family members and non-relatives in the same household who meet the criteria for tax exemption under the Civil Code — that they are either students or incapable of earning a livelihood — are not qualified for the tax credit when they are between 20 and 60.
The Ministry of Finance proposed the revisions after the Council of Grand Justices ruled that the law was in violation of the principles of equality enshrined in the Constitution.
The new legislation will take effect before next year’s tax-filing season in May and it will benefit an estimated 410,000 households, who together will see an increase of NT$2 billion (US$68.74 million) in their disposable income.
Also passed by the legislature yesterday was an amendment to the Labor Insurance Act (勞工保險條例) which stipulates that workers aged 15 to 65 will be required to obtain insurance coverage, bringing about 20,000 workers over the age of 60 into the program.
The amendment also requires that the Bureau of Labor Insurance pay interest on payments of claims that have been delayed.
It was revised to address a Council of Grand Justices ruling that the system was unconstitutional because the insured were required to pay interest on overdue premiums, but did not receive interest on payments delayed by the bureau.