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Q:
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If the total income amount does not exceed the sum of allowance and standard deductions, and exempted from declaration, is it unnecessary for the declaring the alternative minimum tax?
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A:
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Not necessarily. If the basic income amount exceeds TWD 6.7 million, the taxpayer should still declare and pay for the minimum tax (basic tax amount).
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Q:
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Does an individual declaring for basic tax amount means he must pay for it in Taiwan?
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A:
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Not necessarily. If the general income tax amount is lower than the basic tax amount, besides the tax amount from the original income, the taxpayer should pay for income tax based on the difference between basic tax amount and general income tax amount.
The income tax of overseas income paid to the income source country can be deducted for basic income amount, the deducted amount shall not exceed the basic tax amount increased according to regulations due to the calculation of the sum of overseas income. The proof of paid tax shall be attached issued by the income source country.
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Q:
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What is the range of insurance benefits that shall be included in individuals’ basic income amount?
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A:
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Only when the beneficiary and the claimant are not the same person of the life insurance and annual insurance benefits.
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Q:
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How to determine is an insurance contract is applicable to the alternative minimum tax?
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A:
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Only insurance contract which period starting from 1 January, 2006 shall be applicable to the alternative minimum tax.
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Q:
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What are the requirements of the tax allowance of TWD 33.3 million in insurance benefits?
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A:
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When the beneficiary and the claimant are not the same person of the life insurance and annual insurance benefits, if it is related to death benefit, and the total amount of a reporting household is less than TWD 33.3 million annually, it is exempted from being included in the basic income. For those exceeding TWD 33.3 million, the death benefit will be calculated as the basic income after deducting TWD 33.3 million.
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FAQ
