To maintain social justice and narrow down the gap between the rich and the poor in Taiwan, the Ministry of Finance launched the Financial Stability Plan in early 2014, which is expected to increase tax revenue by NT$70 billion every year after amendment to the related tax laws is passed.
Among the reform programs of the Financial Stability Plan, the amendment to Individual Income Tax should draw the most attention, said the Local Tax Bureau of Taichung City Government. To lessen tax burden on the disadvantaged groups and low-income earners, standard payroll and disability deduction amounts will be each increased by NT$20,000, while the applicable tax rate will be raised to 45% for the net proceeds of more than NT$10 million.
Local Tax Bureau added that, if the Financial Stability Plan is approved by the Legislature this year, the amendment to Individual Income Tax will be implemented next year, and taxpayers will use it to declare their tax return in the year after next year. It is hoped that this tax reform will have high-income earners pay a little more tax while wage earners pay less tax.
If you have any questions, please call toll-free service hotline 0800-086969 or 04-22585000 ext. 1 for the call center of Local Tax Bureau.