In the future, wage earners might be able to pay less tax. Lawmakers have been wanting to pass the verifiable wage expense deduction bill during the current session, however, the Ministry of Finance has allegedly recommended another alternative, to include tax deductions in wardrobe fees, occupational tools expenses and training expenses. Currently, the issue is still under review.
To reduce the burden on taxpayers, the Ministry of Finance commissioned an external report on potential tax base-item wage deductions. These reportedly include work-related wardrobe expenses, occupational item expenditures, and training expenses. If the reports are true, accountants may be able to deduct business attire as a business expense in the future.
It would be difficult to define. For wardrobe costs, people can just go out and buy receipts. For training costs, people can just produce a certification. For occupational tools, people might also just produce receipts. These receipts could belong to someone else or their company.
Special wage tax deductions will go up from the current NT$ 128,000 to NT$ 200,000 next year, which should be enough to cover most expenses for most wage earners. In the future, performers may be able to deduct their costumes, lawyers may be able to deduct their suits and cargo drivers that use their own trucks may be able to deduct their trucks as business expenses. The revision also includes computers used for work along with work-related books, magazines and academic conference expenditures. Those with total expenditures over NT$ 200,000 can use the verifiable deduction expenditure system.
The government allocates funds for professors to attend conferences overseas. Now, you're allowing them to deduct these expenses from their taxes? Isn't this unncessary?
In 2017, a judge ruled the NT$ 128,000 salary cap was unconstitutional in a case brought by model Novia Lin. The judge ordered the ministry to submit a solution by next February. The ministry says it is still reviewing the issue and consulting with various parties at present time.