TAIPEI (Taiwan News) — Finance Minister Chuang Tsui-yun (莊翠雲) on Monday (Aug. 19) said that single people renting an apartment and making less than NT$626,000 (US$19,000) a year will be exempt from income taxes.
In an interview with Happy Radio on Monday, Chuang said the government has optimized the tax system to better support the public with most tax exemptions and deduction limits increased by at least 10% between 2017 and 2024. For instance, a special deduction of NT$120,000 has been introduced for long-term care, and the special deduction for preschool children has been extended to children under six. The deduction increased from NT$120,000 to NT$150,000 for the first child and NT$225,000 per year for each additional child.
Regarding renters, Chuang noted that the law was amended to allow rent to be classified as a special deduction, with the deduction limit raised to NT$180,000.
Chuang said for their 2024 income taxes, single renters can subtract NT$97,000 in tax exemptions, NT$131,000 in standard deductions, NT$218,000 in salary deductions, and NT$180,000 in rent deductions for a total of NT$626,000. If their income is below NT$626,000, they will not have to pay taxes next year, said Chuang.
In 2017, the annual income had to be below NT$306,000 to qualify for the same tax exemption, said Chuang.
For dual-income families renting an apartment, the total income tax deductions are NT$1,072,000. For a family of four renting an apartment (with two children under six years old), the deductions amount to NT$1,641,000.
Looking at the adjustments in exemptions and deductions over recent years, Chuang said that the tax exemption amount for 2024 is approximately 10% higher than in 2017, while the standard deduction has increased by about 46%. During the same period, salary income and special deductions for people with disabilities have increased by 70%, and the preschool child special deduction has more than doubled.
In addition, Chuang said the government places great importance on the right to adequate and affordable housing. In August last year, state-run banks under the Ministry of Finance launched a new preferential home loan program for young first-time buyers.
The program includes interest subsidies, raises the maximum loan amount to NT$10 million, extends the loan period to 40 years, and increases the grace period to five years.
However, Chuang pointed out that some market participants have engaged in speculative activities, such as using proxy buyers, subletting, and other practices that do not align with the policy goals of the preferential loan program. "We certainly need to stop this," she said.
More than 1,500 violations have been identified so far. In addition to reclaiming the subsidized interest, the loan terms will be renegotiated, said Chuang.
Banks will also scrutinize loan applications for any signs of proxy buyers and will continue to monitor and audit post-loan compliance. The goal is to ensure that those in need value the opportunity provided by this one-time preferential loan, said Chuang.
