The Cabinet approved the Ministry of Finance's (MOF) proposal to amend the Income Tax Act today. The draft amendment, which would allow taxpayers to receive exemptions for non-lineal familial dependents of all ages, will be sent to the Legislature for review.
Income Tax Act Article 17, Paragraph 1, Sub-paragraph 1, Item 4 currently states that a taxpayer may receive exemptions for "other relatives or family members" (Items 1-3 regulate exemptions for his or her spouse, lineal ascendants, descendants and siblings) over 60 years old or under 20 who are incapable of earning a livelihood and are dependent on the taxpayer. However, the Judicial Yuan ruled that this discriminates against familial dependents between the ages of 20 to 60, violating Article 7 of the Constitution of the Republic of China, which guarantees citizens equality before the law. The MOF thus drafted an amendment that would satisfy the Judicial Yuan's requirements.
The draft amendment grants exemptions for relatives or family members of the taxpayer "who are under 20 years of age or who, although having attained 20 years of age, are being supported by the taxpayer by reason of their studying in school, or having physical or mental disability, or being incapable of earning a livelihood."