Tax Deductions for Skipped-Generation Households|特定因素"隔代教養" 綜所稅擴大抵減

Tax season has started and here is the change that some families should take notice. You can enjoy income tax deductions if you are raising your grandchildren on behalf of their parents due to the death, disappearance or imprisonment of the dependent's parents. These tax deductions will be available this year.


The Ministry of Finance has announced income tax deductions for households where grandparents are raising grandchildren due to the death, disappearance or long-term imprisonment of the grandchildren's parents. Households with children under the age of five can apply for the Special Deduction for Pre-school Children of NT$25,000, while those with college or university students can apply for the Special Deduction for Educational Tuition of NT$25,000. However, these deductions are only applicable in cases where the tax rate is under 20 percent.

If you meet the legal requirements and grandparents are indeed raising their grandchildren, you can provide documentary proof to apply for these deductions.

The ministry says the Special Deduction for Pre-school Children will be increased to NT$120,000 in May 2019 for the 2018 tax year. Meanwhile, improvements have been made to the online tax filing system. In the past, people with computers running macOS or Linux had to go through numerous checkpoints, making the whole experience very user-unfriendly. This year, improvements have been made to streamline the process.