The National Taxation Bureau of Kaohsiung stated that for taxpayers, their spouses, or dependents who meet the requirement announced by the Ministry of Health and Welfare for the physically and mentally disabled requiring long-term care, special deduction for long- term care can be claimed for the 2019 individual income tax return to be filed in May 2020 for a fixed amount deduction of NT$ 120,000 per person per year. Taking into account that it is the first year, the time limit for obtaining the "diagnosis certificate of illness and disability" in the first year is flexibly relaxed for people’s rights and benefits.
The Bureau explained that there are four types of care for the physically and mentally disabled: Hiring foreign caregivers, using long-term care benefits and payment for standard services for people with disability levels 2 to 8, staying in residential services institutions for reaching 90 days, and being cared at home. Among them, for those who are cared at home, although it is not necessary to actually hire a foreign caregiver, those who meet one of the severe (or profound) level items or assessment dimension of specific physical and mental disability shall submit a copy of the Disability Certificate (or Card) valid for 2019 or a professional assessment by a designated medical institution, to obtain the "Diagnosis Certificate of Illness and Disability" to prove the physical and mental disability eligibility for long-term care.
The Bureau further explained that the newly added special deduction for long-term care may moderately reduce taxpayers’ burden, but it often receives the public’s feedback for not being able to make appointments in time with hospitals for assessment; Medical institutions also report that a certain observation period is needed for issuing "Diagnosis Certificate of Illness and Disability" and they cannot care for everyone with appointments in time. Therefore, for the first year, the timeline for obtaining of "Diagnosis Certificate of Illness and Disability" is flexibly relaxed. The special deduction for long-term care can be claimed in May 2020 if people obtain "Diagnosis Certificate of Illness and Disability" prior to the 2019 income tax return filing deadline. 【June 1, 2020(extend to June 30, 2020)】
The Bureau especially reminded that the special deductions for long-term care have wealth restrictions. If the household’s applicable tax rate is more than 20%, the dividend income is calculated separately at 28%, or the basic income exceeds NT$6.7 million, the special deductions for long-term care are not applicable. If there are physically and mentally disabled been cared at home, please go to a medical institution for assessment as soon as possible to obtain a copy of the "Diagnosis Certificate of Illness and Disability." In addition, in order to provide convenient tax return filing services, the public is exempt from submitting supporting documents if the deductions information inquired from National Taxation Bureau or downloaded from the Internet has already listed. If there are any doubts or questions, please call the Bureau’s toll-free service number 0800-000321.
Contact: Mrs. Chang, the Revenue Officer of the Second Examination Division