Individual income tax exemption, standard tax deduction and special deduction thresholds are to be raised next year, in time for the tax season in May 2023, the Ministry of Finance announced on Wednesday.
The adjustments would see the personal tax exemption rise to NT$92,000 (US$3,309) from NT$88,000.
For taxpayers aged 70 or older, or with a spouse or lineal ascendant 70 or older, the personal exemption would increase from NT$132,000 to NT$138,000, the ministry said.
Photo: Clare Cheng, Taipei Times
In addition, the standard deduction for single filers would be raised to NT$124,000 from NT$120,000, and to NT$248,000 from NT$240,000 for married couples filing jointly.
The special deduction for wage and salary earners and people with disabilities is to be increased from NT$200,000 to NT$207,000.
Gift and inheritance tax exemptions are to rise by NT$240,000 and NT$1.33 million to NT$2.44 million and NT$13.33 million respectively.
The changes to deduction and exemption thresholds have been triggered due to increases in the consumer price index (CPI).
Since the previous adjustments in 2017, the CPI has risen by more than 3 percent, with the ministry legally obligated to make adjustments based on the average 12-month CPI data.
The government has also been forced to make greater concessions on inheritance and gift taxes due to the CPI rising by 11.09 percent since the previous adjustment to these rates in 2009.
The upward adjustments would lower the government’s tax revenues by NT$9.57 billion, the ministry said.
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