The Ministry of Finance made an announcement regarding the amounts of basic income eligible for an exemption from income basic tax and related deductions for 2021 according to the Income Basic Tax Act on 16 December 2020.

The Ministry of Finance states that, in accordance with the Income Basic Tax Act, if the total increase of the Consumer Price Index (CPI) has reached 10% or higher compared to the index of the year of previous adjustment, the following amounts should be adjusted: 

1. the amount of basic income eligible for exemption from income basic tax and the amount of deductions for the purpose of calculating the income basic tax of a profit-seeking enterprise,

2. the amount of basic income eligible for exemption from income basic tax and the amount of deductions for the purpose of calculating the income basic tax of an individual, and

3. the amount of insurance payment made upon the death of an insured person, which can be excluded when calculating the basic income of an individual.

In terms of the applicable 12-month (October 2020 to November 2019) average CPI does not reach 10%, no adjustment should be made to the aforementioned amounts for 2021, and those amounts announced by the Ministry of Finance for 2020 (NT$500,000/ NT$6,700,000 /NT$33,300,000 ) remain in effect for 2021.

The Ministry of Finance further states that those aforementioned amounts for 2021 apply to taxpayers when filing 2021 income tax returns in 2022.
    

Press Release Contact: Mr. Liu and Ms. Wu, Section Chief 
Phone: 02 -2322-7556/02-2322-8423