National Taxation Bureau of the Northern Area (NTBNA), Ministry of Finance stated that, from 2019, each person receiving salaries and wages may claim a deduction up to a maximum of NT$200,000 or the necessary expenses directly related to performing duties or doing work and borne by the recipient to be deducted from his or her salaries and wages in accordance to Subparagraph 1, Category 3, Paragraph 1 of Article 14 of the Income Act. For filing the necessary expenses deducted from salaries and wages, please submit the “2019 Application for Necessary Expenses Deducted from Salaries and Wages” and other supporting documents when declaring.
In addition, NTBNA explains that if the total amount of the following necessary expenses which are directly related to services rendered and paid by the income receiver exceeds the deduction amount, the income receiver should submit relevant supporting documents so that these necessary expenses can be deducted from salaries and wages, and the amount of income shall be the balance after such a deduction:
(1) Vocational clothing expenses: The expenses of purchase, rental, cleaning, and maintenance of special clothing which must be worn for performing an occupation or performance costumes. The annual deduction for each person is limited to 3% of the total salaries and wages in performance of his (her) vocation.
(2) Upgrading training expenses: The training expenses of participating in courses at specified institutions for the specific skills or expertise which is required to perform duties, do work or follow legal requirements. The annual deduction for each person is limited to 3% of the total salaries and wages.
(3) Vocational tool expenses: The expenses incurred in purchasing books, periodicals, and tools for performing duties or doing work. If the efficiency of vocational tools is not exhausted within two years and the expenditure exceeds NT$80,000, such tool shall be depreciated or amortized. The annual deduction for each person is limited to 3% of the total salaries and wages in performance of his (her) vocation.
If you have any questions, please call the toll-free number 0800-000-321 for dedicated assistance.