Tax Relief on the deductions of 2018 Individual Income Tax Declaration

Pingtung Branch, National Taxation Bureau of the Southern Area, Ministry of Finance, expressed that tax deductions have been raised starting for the 2018 Individual Income Tax Declaration in May 2019, including the amount of standard deduction, special deduction of income from salaries/wages, special deduction for the disabled, and special deduction for pre-school children.   The above-mentioned deduction adjustments became effective on January 1, 2018. Thus, for a single taxpayer, the amount of the standard deduction for the 2018 Individual Income Tax Declaration has risen from NTD 90,000 to NTD 120,000; for a taxpayer with his/her spouse, the amount of the standard deduction has risen from NTD 180,000 to NTD 240,000. Furthermore, the amount of special deduction of income from salaries/wages has risen from NTD 128,000 to NTD 200,000 per person; the special deduction for the disabled has risen from NTD 128,000 to 200,000 per person, and the special deduction for pre-school children has risen from NTD 25,000 to NTD 120,000 per person. Such tax relief would be favorable to a majority of taxpayers.   Pintung Branch added that another tax benefit is to relax the regulation of declaring the itemized deduction of National Health Insurance (NHI) premiums. Before Jan 1, 2018, NHI premiums of the insured and their dependents were tax-deductible only under the condition that the premiums were paid by the taxpayer, the taxpayer’s spouse, or the taxpayer’s lineal dependents being in the same tax declaration household with the insured and their dependents. However, considering NHI is a compulsory insurance in Taiwan, and its premiums are one kind of basic living expense, the Ministry of Finance announced on Jan 2, 2019, that taxpayers are able to declare the NHI premiums of his/herself, his/her spouse, or his/her lineal dependents regardless of whether the NHI premiums were paid by the members in the same tax declaration household.   For instance, Miss Wang has enrolled in the NHI program, and has also enrolled for her father, Mr. Wang, as her dependent; however, Mr. Wang’s son, Mr. Wang Jr., may declare his father as his dependent in 2018 Individual Income Tax Declaration. Pintung Branch indicated that even if Mr. Wang was enrolled as Miss Wang’s dependent and that his premium was paid by her under the NHI system, Mr. Wang’s NHI premium could be declared as Mr. Wang Jr.’s itemized deduction of 2018 Individual Income Tax Declaration in May 2019. For any inquiries, please don't hesitate to contact us through our toll-free number: 0800-000-321. We are at your service. Press release contact: The Individual Income Tax Section Chief Wang Telephone number: 08-7311166 ext. 200.