2011-09-19
Taiwan Passes Amendment on Special Deductions from Income Tax for Families with Kids Aged 2 to 5
Taiwan had already decided to distribute an NT$ 2,500 dollar monthly subsidy to families with infants aged up to 2 years old, and the education fees for children aged 5 and 6 years old will be fully sponsored by the Government in 2012. However, current welfare policy in Taiwan does not provide any benefit to families that have children between the ages of 2 to 5 years old. The Government now plans to adopt a new policy to close this gap.
According to the amendment draft passed by Taiwan’s Executive Yuan, a family with a 2 to 5-year-old child may enjoy a special deduction of NT$ 25,000 from the family’s taxable yearly income. However, only families with net taxable annual income earning NT$ 1,130,000 and lower will be eligible for this special deduction. Also, families already enjoying any similar subsidy from other resources for 2 to 5 year-old child will not be permitted to claim this special deduction.
The amendment draft of the Income Tax Act will be submitted to the Legislative Yuan for a hearing and discussion. It is expected that this special deduction will be approved and enacted by the Legislative Yuan in the year 2012.
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