Elevated consumer prices could drive the government to raise basic living expenses and personal income tax deductions later this year to help ease people’s financial burden in time for the tax season in May next year, accountants said yesterday.
The Ministry of Finance is due to revise the standard reductions by the end of the year so people have new benchmarks when they file income taxes.
As of last month, the consumer price index had increased 5.034 percent, steeper than the statutory 3 percent to set off living expenses adjustments from the previous review in late 2021, the Directorate-General of Budget, Accounting and Statistics said.
Photo: CNA
The inflation data would obligate the ministry to lift the deduction amount by NT$5,000 from NT$92,000 to NT$97,000 on personal income tax alone, Ernst & Young Taiwan (安永台灣) said in a note.
The standard deduction for single filers would rise by NT$6,000 from NT$124,000 to NT$130,000, while the special deduction for wage and salary earners and people with disabilities would be increased by NT$10,000 from NT$207,000 to NT$217,000, the firm said.
The adjustments would translate into noticeable tax savings for a family of four on double incomes, it said, pointing out that they can file an extra NT$20,000 in personal income deductions, NT$12,000 in standard deductions and another NT$20,000 in special deductions.
That would suggest an overall tax saving of NT$2,600 from a year earlier for people paying an income tax rate of 5 percent, Ernst & Young Taiwan said.
The tax savings would amount to NT$2,100 for family of two without children on double incomes, it said.
Single working people could save between NT$1,050 and NT$8,400 in taxes depending on their income levels, it said. Married couples enjoy higher deductions.
Minister of Finance Chuang Tsui-yun (莊翠雲) earlier told a legislative hearing that upward living expense adjustments are highly likely later this year in light of consumer price trends. The ministry is to arrive at its final conclusions in November.
Higher inflation means the government needs to give people more leeway in dealing with their tax payments, analysts said.
President William Lai (賴清德) yesterday criticized the nuclear energy referendum scheduled for Saturday next week, saying that holding the plebiscite before the government can conduct safety evaluations is a denial of the public’s right to make informed decisions. Lai, who is also the chairman of the Democratic Progressive Party (DPP), made the comments at the party’s Central Standing Committee meeting at its headquarters in Taipei. ‘NO’ “I will go to the ballot box on Saturday next week to cast a ‘no’ vote, as we all should do,” he said as he called on the public to reject the proposition to reactivate the decommissioned
In his National Day Rally speech on Sunday, Singaporean Prime Minister Lawrence Wong (黃循財) quoted the Taiwanese song One Small Umbrella (一支小雨傘) to describe his nation’s situation. Wong’s use of such a song shows Singapore’s familiarity with Taiwan’s culture and is a perfect reflection of exchanges between the two nations, Representative to Singapore Tung Chen-yuan (童振源) said yesterday in a post on Facebook. Wong quoted the song, saying: “As the rain gets heavier, I will take care of you, and you,” in Mandarin, using it as a metaphor for Singaporeans coming together to face challenges. Other Singaporean politicians have also used Taiwanese songs
US President Donald Trump on Friday said that Chinese President Xi Jinping (習近平) told him China would not invade Taiwan while Trump is in office. Trump made the remarks in an interview with Fox News, ahead of talks with Russian President Vladimir Putin over Moscow’s invasion of Ukraine. “I will tell you, you know, you have a very similar thing with President Xi of China and Taiwan, but I don’t believe there’s any way it’s going to happen as long as I’m here. We’ll see,” Trump said during an interview on Fox News’ Special Report. “He told me: ‘I will never do
The Legislative Yuan yesterday approved an aid and recovery package authorizing the government to allocate up to NT$60 billion (US$1.99 billion) for regions hit by Typhoon Danas and subsequent torrential rains last month. Proposed by the Executive Yuan on Aug. 7, the bill was passed swiftly after ruling and opposition lawmakers reached a consensus in inter-party talks on relief funding and assistance for disaster-stricken areas. The package increases the government’s spending cap from the originally proposed NT$56 billion to NT$60 billion, earmarked for repairing and rebuilding infrastructure, electricity systems, telecommunications and cable TV networks, cultural heritage sites and other public facilities.
RSS