TAIPEI (TVBS News) — Taiwan's Ministry of Finance announced on Friday (Jan. 5) significant changes to the country's income tax system aimed at easing the financial burden on individuals and families. Under a new optimized tax scheme, single individuals with an annual income below NT＄626,000 and renting housing will be exempt from income tax in the next filing year, according to Minister of Finance Chuang Tsui-yun.
Additionally, families comprising two parents and two young children with an annual income below NT＄1.641 million will also benefit from this tax exemption. Chuang highlighted that these changes are a result of increased deductions and adjustments in the tax structure, not because of low-income status.
According to 2021 statistics, about 47%, or approximately 3.05 million households in Taiwan, have been exempted from paying income tax due to these modifications. Chuang emphasized that the updated tax calculations are designed to benefit single individuals working away from home and two-income families renting houses, offering substantial deductible amounts.
For example, two-income families renting a house can now deduct up to NT＄1.072 million, while a family of four with young children could see deductions up to NT＄1.641 million. Furthermore, if these families live with seniors aged 70 or older, the deductible amount could surpass NT＄2 million, providing significant relief.
