A banner promoting the use of smartphones to file income tax is displayed outside a district service center in Taipei Tuesday. CNA photo April 30, 2024
Taipei, April 30 (CNA) When Taiwan's 6.7 million households start filing their annual individual income tax returns on May 1, there will be a few changes from last year, including an increase in the basic cost of living allowance, the Ministry of Finance said Tuesday.
The tax-deductible allowance for basic living expenses per person has been adjusted upward by NT$6,000 (US$84) from the previous reporting year to NT$202,000, which will benefit an estimated 2.35 million households and reduce government revenue by around NT$18.9 billion.
For a family of four, the extra NT$24,000 allowance provided by the higher cost of living standard will save families NT$1,200 in taxes at a 5 percent tax rate.
Another change is that because the legal age of adulthood was lowered to 18 years old from the previous 20 years as of Jan. 1, 2023, individuals who turned 18 last year may have to start filing taxes on their own.
They can only continue to be treated as a dependent of a household if they are still attending school, have a disability, or are unable to care for themselves.
The filing period will last one month until May 31. Taxes can be filed at the National Taxation Bureau's tax filing centers around Taiwan, according to Sung Hsiu-ling (宋秀玲), director-general of the ministry's Taxation Administration.
This year, an estimated 6.7 million households will be required to file income tax returns, compared with 6.63 million households in the previous reporting year, due mainly to the lowering of the age of adulthood to 18, according to Sung.
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