Expected tax exemption limit increases may benefit millions
October 6, 2012, 12:10 am TWN
TAIPEI -- The Ministry of Finance (MOF) is expected to raise income tax exemption limits next year, in line with inflation reaching over 3 percent this year in a measure that will benefit more than 5.4 million people.
It was predicted that the standard deduction will be raised by NT$3,000 (US$102) for ordinary people, by NT$4,000 for people at least 70 years old, by NT$2,000 for singles and by NT$4,500 for the married.
The special deduction of income from salaries or wages and the special deduction for the disabled and handicapped will be raised by NT$3,000 each.
Meanwhile the minimum amount of net income to be taxed at 5 percent will be raised from NT$500,000 to NT$520,000.
According to the law, the adjustment shall be made automatically when the consumer price index climbs by more than 3 percent in accumulation after the last adjustment, and the MOF will have to announce the adjustment by the end of the year.
The forthcoming adjustment will be applied when people file 2013 tax returns in 2014.