Tax-deductible allowance for living expenses to increase to NT$210,000

Taipei, Nov. 28 (CNA) The annual tax-deductible allowance for basic living expenses per person will be raised by NT$8,000 (US$245) to NT$210,000 for tax filers in 2025, the Ministry of Finance (MOF) announced Thursday.

The adjustment is expected to benefit an estimated 2.08 million households and reduce government revenue by around NT$2.6 billion, the ministry said.

Taiwan's 2017 Taxpayer Rights Protection Act stipulates that individuals should not be taxed on the amount they need to cover basic expenses, which is set at 60 percent of the median per capita disposable income from the preceding year.

In 2023, the median annual income was NT$349,000.

In addition, individual income tax exemptions will rise from NT$92,000 to NT$97,000, while standard tax deductions will go up from NT$124,000 to NT$131,000, according to the ministry.

(By Chang Ai and Evelyn Kao) Endtiem/JT