The annual tax-deductible allowance for basic living expenses could be raised to NT$209,000 (US$6,473) per person next year, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said on Friday.
In its Survey of Family Income and Expenditure for last year, median disposable income per capita was NT$349,000, up 3.7 percent from the previous reporting year, the DGBAS said.
Based on that figure, the tax-deductible allowance for basic living expenses per person should be about NT$209,000 for this year’s income tax purposes, a NT$7,000 increase from NT$202,000 for last year, the statistics agency said.
Photo: Clare Cheng, Taipei Times
Under the Taxpayer Rights Protection Act (納稅者權利保護法), the government is prevented from taxing the amount people need to purchase basic necessities, which is set at 60 percent of the median per capita disposable income from the preceding year.
The Ministry of Finance said the exact figure for the adjusted tax deductible allowance for basic living expenses would officially be announced at the end of this year.
Under the tax system, if the basic living expenses allowance exceeds the combined personal exemption, the standard deduction and special deductions, the difference can be deducted from gross income.
This allowance is generally used by households in which there are children, because for single people and couples without dependents, the basic exemption and standard deduction is usually more favorable, totaling NT$216,000 per person for the 2023 fiscal year.
However, exemptions per dependent for last year were NT$92,000 per person in most cases, while the basic living expense allowance can be claimed for each person in a tax return, including dependents.
Meanwhile, the gap in disposable income between the top and bottom 20 percent of income earners in Taiwan is the narrowest it has been since 2019, the Survey of Family Income and Expenditure showed.
Average disposable income per household last year was NT$1.137 million, up 2.5 percent from 2022, and average disposable income per capita was NT$407,000, up 4 percent from a year earlier, the survey showed.
Average disposable income per household for the top 20 percent of income earners increased 2.6 percent from 2022 to NT$2.302 million, while for the bottom 20 percent it rose 3 percent to NT$376,000, it showed.
That means the income of the top 20 percent was 6.12 times higher than that of the bottom 20 percent, lower than 6.15 in 2022 and the lowest since 6.1 in 2019, the DGBAS said.
It was also the first time the ratio has declined year-on-year since 2017.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College