Tax Cuts to Help Ease Inflation Burden
November 6, 2012 Taxation in Taiwan
TAIPEI – Taxpayers in Taiwan will be paying less tax in the coming year, thanks to the government’s efforts to counteract the effects high inflation rates on the living standards of taxpayers.
On November 5th the Minister of Finance of Taiwan Chang Sheng-ford announced that the government will soon ease the tax burdens of individual taxpayers in the country by increasing the currently available deductions and exemptions on personal income taxes.
The Minister said that the changes will benefit approximately 5.4 million families in the country and would cost the government up to TWD 7 billion per year in foregone revenues.
Under current regulations, tax benefits on personal incomes must be adjusted upwards when the inflation rate in the country reaches or exceeds 3 percent.
Chang Sheng-ford did not comment on the exact details of the adjustments, but said that the final decision will be revealed by the end of the month, following further reviews by the Ministry of Finance and the Directorate General of Budget, Accounting, and Statistics.
Despite no official word yet being given on the extent of the planned benefits, local experts have already speculated that the government will adjust the current tax deductions and allowances upwards by up to TWD 5 000 per taxpayer per year.
The changes are expected to come into effect for the 2013 fiscal year.
Photo by martin_kalfatovic