The China Post news staff
TAIPEI, Taiwan — Is it a “little happiness” or “great misfortune” for many young workers with low monthly pay of NT$22,000 (US$723) to be exempt from any personal income tax? While the answer may seem obvious, it’s more than a little complicated. In principle, all the nationals with income records are required to file personal income tax returns in May.
But as part of its efforts to streamline taxation, the Ministry of Finance has decided to exempt potential taxpayers from filing the tax returns so long as their annual income earned for 2016 is lower than the combined amount of tax exemption and tax deduction.
Salaried employees are also allowed to enjoy an additional fixed salary deduction.
This year, the tax exemption, standard tax deduction and salary deduction amounts remain unchanged at NT$85,000, NT$90,000 and NT$128,000, respectively, as set last year.
Accordingly, salaried workers with an annual income of under NT$303,000 for 2016 are not required to file personal income tax returns next month. If they have dependent family members, the non-taxation threshold will be higher.
Accordingly, any young salaried worker with a low monthly pay of NT$22,000 doesn’t have to pay a cent of tax. This seemingly enviable privilege, is of light relief to those young people earning under NT$22,000 a month, who fall into the “working poor” group, as their income can hardly support individual living expenditures.