Ministry of Finance Preparing New Tax Benefit|基本生活費排除薪扣額 估149萬戶受惠

Further tax cuts in the election year. It is reported that the Ministry of Finance is planning to include four special deductions for disability, tuition, pre-school children, and savings and investment starting next tax season in May 2019. 1.5 million households are expected to benefit from this new system but single taxpayers or families with no kids may find the change irrelevant to them.


The Ministry of Finance has plans to amend the basic living expenses calculation method before year-end to exclude the NT$200,000 special deduction for salaries or wages. However, it will include the four special deductions for disability, tuition, pre-school children, and savings and investment. The number of benefiting households is expected to rise from 219,300 to 1.49 million once the new system takes effect.

The stalled economy has left some people struggling to get by, and all types of basic living expenses are rising. If the government can consider making all of these tax-exempt, we of course would be really glad to see that happen.

Although restrictions will be relaxed under the new system, it will not be applicable to single taxpayers or "dual income, no kids" households. This year, the individual tax exemption was NT$88,000, and the standard deduction was NT$120,000 for a total of NT$208,000. This amount was higher than the individual basic living expenses amount of NT$171,000. The situation is the same for DINK households, and different for households of four with elementary school-age children. If there are no other special deductions, they will enjoy a new NT$92,000 deduction during the next tax season.

There are more households that are taking care of relatives, and some that aren't eligible for special deductions, and these are the ones that will benefit. We will make an announcement before year-end, and the new system will be applicable by next year's tax season.

The ministry's plans call for the adjustments to be applicable for all salaried classes, although the situations of each individual taxpayer will be taken into account. The new system will be retroactive, with an implementation date of Jan. 1, 2018. This means it can be used during the next tax season in May 2019.