TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) on Wednesday outlined a series of income tax reductions ahead of the start of this year’s tax filing season, saying the measures are intended to share the benefits of Taiwan’s economic growth with the public, per LTN.
Speaking at a DPP Central Standing Committee meeting, Lai said tax filing will begin Friday and run through June 1. He noted that last year’s economic growth rate reached 8.68%, a 15-year high, reflecting the efforts of citizens and Taiwan’s resilience amid global economic and trade changes.
“The government is well aware that the fiscal benefits of growth must be transformed into value that the public can feel in their everyday lives,” he said. To share the prosperity, the Cabinet approved income tax cuts designed to spread wealth across society.
Lai identified five tax reduction measures in this year’s income tax filings. The first is that the basic living expense deduction per person has been increased to NT$213,000 (US$6,750), while the special deduction for long-term care will rise by 50% to NT$180,000.
To ease the financial burden on families, Lai said the special deduction for preschool children has been expanded to include those under age 6. The deduction for the first child will increase from NT$120,000 to NT$150,000, while deductions for additional children will rise by 50% to NT$225,000, per LTN.
He added that reporting requirements for assisted reproductive technology expenses have also been relaxed under the medical and maternity expenses category. Donations to disaster relief foundations for fundraising projects initiated by individuals, including those related to Typhoon Danas and the Mataian Creek landslide dam breach last year, will also be eligible as deductions.
Lai said that despite ongoing global trade shifts and domestic challenges, the ruling DPP will continue to advance economic policies with a steady hand. He said the government remains committed to strengthening the country’s ability to care for its people and promoting a more equitable and prosperous society.
