Taiwan MOF Explains Special Deductions on Individual Income Tax

The Taiwanese Ministry of Finance Oct. 21 explained the application of the 3 percent individual income tax deduction for training fees, occupational clothing, and occupational tools. The explanation clarified that: 1) the maximum amount of the special deduction is 200,000 NT$ (US$6,538) per person; 2) the full deduction is allowed even if salary is lower than the deduction or the individual doesn’t collect expense spending vouchers; 3) taxable income is treated as zero if, after deductions, the income is negative or zero; and 4) the special deductions are in line with principles of fair taxation and simple administration. [Taiwan, Ministry ...