The Ministry of Finance (MOF) made an announcement regarding the amounts of basic income eligible for an exemption from Income Basic Tax and related deductions for 2023 according to the Income Basic Tax Act on 21 December 2022.
The MOF states that, in accordance with the Income Basic Tax Act, if the total increase of the Consumer Price Index (CPI) reaches 10% or higher compared to the index of the last adjusted year, the following amounts should be adjusted:
- the amount of basic income eligible for exemption from Income Basic Tax and the amount of deduction for the purpose of calculating the income basic tax of a profit-seeking enterprise,
- the amount of basic income eligible for exemption from Income Basic Tax and the amount of deduction for the purpose of calculating the income basic tax of an individual, and
- 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.
As only the total increase of the applicable CPI for a profit-seeking enterprise (10.55%) has met the said 10% condition, the amount of basic income exemption/deduction for a profit-seeking enterprise is now adjusted from NT$500,000 to NT$600,000 for 2023, while the amount of basic income exemption/deduction and that of insurance payment exclusion for an individual remain NT$6,700,000 and NT$33,300,000 for 2023.
The MOF further states that those aforementioned amounts for 2023 apply to taxpayers when filing 2023 income tax returns in 2024.
Press Release Contact: Ms. Lin, Section Chief and Ms. Chiu, Section Chief
Phone: 02 -2322-7556/02-2322-8423