Interest income from a postal time deposit should be declared in an individual income tax return

Interest income from a postal time deposit is not tax-exempt income, and should be declared in an individual income tax return, stated the National Tax Administration of Southern Taiwan Province (NTAS).　
　
Many citizens mistakenly believe that all interest paid by the Post Office is tax-exempt income and does not need to be declared. The NTAS explained that according to the Postal Savings and Remittances Act, for individuals opening a passbook account and making a deposit under NT$1 million, the interest income based on the current deposit interest rate is considered as tax-exempt income. No withholding or declaration for individual income tax has to be made. Postal current deposits over NT$1 million do not generate any interest. But if the amount saved with the Post Office as a time deposit earns interest based on the time deposit interest rate, then the interest shall be considered taxable interest income. The Post Office shall handle the tax withholding according to regulations. The depositor should also declare such income in his or her individual income tax return accordingly, and the special deduction for savings and investment may be applied on such income.　　

The National Tax Administration would like to remind citizens to include the time deposit interest earned from the Post Office when filling in individual income tax returns to avoid being fined for tax evasion.　

　Press Release Contact: Ms. Guo, Chief of Services Division Tel. No.: 06-2298007