Nov 133 min read

What Exemptions and Deductions Can I Claim in Taiwan for the 2024 Tax Year?

Some types of income are completely exempt and not included in income tax calculations:

Capital gains
Gains from securities transactions (after 2016)

Note: determining taxable income derived from land or property is a more complex issue and will be covered in a future installment of this series.

Aside from exempt income, a number of exemptions and deductions are applied to your gross taxable income to reach your final net taxable income. Only resident taxpayers are entitled to claim certain exemptions and deductions on their tax returns, which effectively reduces your net taxable income:

Exemptions

For the taxpayer, their spouse, and dependents or direct family ascendants appearing on the tax return, each individual is allowed NTD 97,000 exemption.
For individuals over 70 years of age, the exemption may be increased to NTD 145,500

Exemption Item	Amount
Exemption	NTD 97,000
Exemption for ages over 70 years	NTD 145,500

If claiming exemptions for others on your tax return (spouse, dependents, ascendants, etc.) will need to provide documentation:

Relationship	Supporting Documents
Spouse	Proof of identity Marriage certificate
Children or siblings under 20, or full-time students, or incapable of working	Document of relationship Proof of financial support Proof of inability to work or proof of student status
Ascendants	Proof of relationship Proof of financial support (under age 60) proof of inability to work (over age 70) proof of life
Other dependents under 20 or over 60	Proof of relationship Proof of financial support/relationship (over age 60) proof of inability to work

Standard Deductions

Standard deduction vs. Itemized deduction

As a resident taxpayer, you are entitled to claim either a standardized deduction or itemized deductions. For many, especially those just getting started in Taiwan, the standard deduction is much more straightforward:

Standard Deduction Item	Amount
Single taxpayer	NTD 131,000
Married (filing jointly)	NTD 262,000

Note: you will need to provide proof of your relationship (e.g. marriage certificate)

Itemized Deductions

These are specific expenses which can be deducted from your gross taxable income. Each deduction has its own limit. There is no fixed ceiling on the itemized deduction total, but you may be required to provide supporting documentation and must be sure to calculate and report the items correctly.

Itemized Deduction Item	Amount / Limitations	Required Documentation
Charitable donations	Up to 20% of gross taxable income	Receipts
Personal insurance premiums (e.g. life insurance, labor, health, or employment insurance)	Limited to NTD 24,000 per person No limit for national health insurance	Receipts and copies of the insurance policies
Medical and maternity expenses	No limit	Receipts
Losses from disaster	No limit (but cannot be deducted if reimbursed by insurance)	Official certificate issued by tax office
Interest paid on owner-occupied home loan	Limited to NTD 300,000	Interest payment receipt Proof of ownership Proof of residence by owner
Rental expenses	NTD 180,000. Cannot claim concurrently with the home loan deduction	Receipts Copy of rental contract signed by tenant and landlord Proof of residence

Special Deductions

There are a number of special deductions also available for resident taxpayers in Taiwan. We will expand on these in a future installment of this series, but a brief summary is given here:

Salaries and wages (NTD 218,000)
Rental expenses (NTD 180,000)
Losses from property transactions
Savings and investment (NTD 270,000)
Disability (NTD 218,000)
Tuition for dependent children (NTD 25,000)
Pre-school children (NTD 150,000 for one child, NTD 225,000 for 2 and above children)
Long-term care expenses (NTD 120,000)

More references can be found here at the official NTB website

Basic Living Expense

Each year the Taiwan Tax authority calculates an estimated “Basic Living Expense” (NTD 209,000 for the 2024 tax year) which can also be treated as a deduction, but with a caveat:

Basic Living Expense	Amount
Basic Living Expense	NTD 209,000

If the basic living expense (multiplied by the number of individuals listed on your tax return) exceeds the total sum of exemptions and deductions claimed, the difference can be used as an additional deduction.

Note: The information in this section is current as of November 2024. Please be aware that the amounts and limits for deductions and exemptions can vary from year to year. Always check the official NTB website or consult a licensed tax professional for accurate information.