Q:
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What is the special deduction for savings and investment in Taiwan income tax? What is the limit?
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A:
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The special deduction for savings and investment includes the following 3 items:
1.
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Interest derived from deposits in financial institutions, excluding the interest from tax-free Postal pass-book savings and public debts, corporate bonds, financial bonds, and short-term commercial papers which subject to separation tax. Also, the interest distributed from beneficiary securities or asset-backed securities issued in accordance with the Financial Asset Securitization Act and the Real Estate Securitization Act.
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2.
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Income from trust funds in the nature of savings.
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3.
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Publicly issued and listed on market tax-deferred registered share obtained before 31 December, 1988, and profit income obtained from transferred, gifted or distributed as inheritance, waived the applicable tax deferred regulations or central depository.
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The income declared for the above items can be listed as a special deduction for savings and investment. The deduction quota is NT$270,000.
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Q:
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What are the regulations for deduction of loss from property transactions when declaring for Taiwan Income Tax?
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A:
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Related proof and documents are required for declaring the deduction of loss from property transactions. The yearly deduction amount shall not exceed the income from property transaction declared for that year. If there is no income from property transaction of that year or the income is less than the loss, the remaining amount of the loss can be deducted in the income from property transaction in the coming 3 years.
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Q:
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What are the regulations for special deduction for the disabled when declaring for Taiwan Income Tax?
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A:
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If the taxpayer, spouse or dependent has a disability certificate or identification (copy of certificate or identification required), or being a patient as defined in The Mental Health Act Article 3 Subparagraph 4 (severe patient diagnosis certificate by specialist is required and cannot substitute with IC card for severe illness), a deduction of NT$200,000 was made for each person in 2019.
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Q:
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What is the definition of “patient as defined in The Mental Health Act Article 3 Subparagraph 4”, mentioned in the regulation for special deduction for the disabled?
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A:
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It refers to the patient who is diagnosed and confirmed by a psychiatric specialist to present queer thoughts and odd behavior detached from reality and as a result to be incapable of managing their own affairs.
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Q:
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What are the regulations for special deduction for educational tuition when declaring for Taiwan Income Tax?
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A:
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If the children of a taxpayer is studying in a local or overseas college or university which qualifications is approved by the Ministry of Education, a deduction of NT$25,000 per child per year may be made for the educational tuition (copy of tuition receipt or other proof is required). For those who received government subsidy should deduct the subsidized amount. However, the tuition of the Open University, vocational colleges, the first three years of five-year vocational colleges are excluded.
The educational subsidies for teachers’ children are considered as salary income instead of “government subsidy”, so it can be declared for special deduction for educational tuition.
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FAQ
