Tax News


Taiwan's Ministry of Finance (MOF) amended regulations governing the ability of tax debtors to exit Taiwan.

In the past, tax collection authorities had no power to impose compulsory execution or to restrict exit from Taiwan of tax debtors who had already paid one-half of the amounts of tax owed and filed procedures for administrative remedies.

According to the amendment, the MOF will have the power to restrict said tax debtors from exiting Taiwan if MOF believes they likely to hide or dispose of properties.


Judicial Yuan interpretation No. 745 held that Articles 14 and 17 of the Income Tax Act, which stipulate, "the special deduction of income from salaries/wages of people whose income from salaries and wages received in exchange for rendering services shall be limited to fixed amounts rather than deductions by actual cost.", is inconsistent with the principle of equality under Article 7 of the Constitution, and must be amended by no later than February 2019.

In order to coordinate with the Judicial Yuan interpretation No. 745, the MOF held a conference to discuss amending the aforesaid regulation in late September. Some participants suggested that special deductions of income from salaries/wages should not be limited to fixed amounts, or that the same should be calculated at a fixed rate, both subject to the ability to pay principle.
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