The National Taxation Bureau of Kaohsiung, Ministry of Finance stated that, when taxpayers desired to deduct a exemption for children who were above 20 years and studied abroad in accordance with Subparagraph 1 of Paragraph 1 of Article 17 of Income Tax Act, the children must be officially enrolled in an academic school by completing the registration procedure and receiving a student card. The said children shall also take school lessons according to the school’s calendar or, for those who have dropped out of the school system shall have a valid enrollment in the academic year.
The Bureau stated that Taxpayer A declared to deduct NT$88,000 of tax exemption for his (her) son who was above 20 years old; and NT$25,000 of special deduction for his (her) son’s tuition. Although Taxpayer A already submitted the enrollment notification issued by an overseas university’s language school and the certificate of tuition payment, that language school is deemed as a non-formal education system. Instead, it is an institution that offers intensive tuition lessons and the students will not be granted with a degree nor be issued with a diploma. Therefore, the Bureau deleted the said amount of exemption and requested Taxpayer A to pay the tax accordingly.
The Bureau highlighted that taxpayers who apply for tax exemption for their children who are over 20 years old and study abroad shall attach photocopies of the tuition payment certification and student card (front and back) of their children as prescribed in Income Tax Act for the verification of tax authority. In case of knowing if the overseas university or college in which their children study is recognized by the Ministry of Education in accordance with “Regulations Governing the Assessment and Recognition of Foreign Academic Records by Institutions of Higher Education”, taxpayers can to the Database for the Reference List of Foreign Universities, Ministry of Education at http://fsedu.moe.gov.tw.
Contact:Miss Chang, the Revenue Officer of the Second Examination Division
TEL: 07-7256600 ext.7256