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, the 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.
The Bureau explained that the care methods, applicable conditions, and supporting documents of the physically and mentally disabled can be divided into the following 4 types:
| Care methods |
Applicable conditions |
Supporting documents to be submitted |
|
| 1 |
Those hiring foreign caregivers |
|
A photocopy of employment permit valid for 2019 |
| 2 |
Those staying in residential services institutions
|
Those staying in a residential service institution in 2019 for at least 90 days of the year |
A photocopy of the payment receipts for at least 90-day accumulative stay in a qualified institution in 2019, a local government’s official placement letter, or relevant supporting documents |
| 3 |
Those using long-term care benefits and payment for standard services |
Those who have been assessed for disability at levels 2 to 8 in accordance with the Long-Term Care Services Act, and use long-term care benefits and payment for standard services in 2019 |
A photocopy of any payment receipt for the use of the designated services in 2019, the official letter of the long-term care management center, or relevant supporting documents |
| 4 |
Those are cared at home
|
(1)Having a severe (or profound) level in one of specific physical and mental disability items or assessment dimensions that is eligible for hiring a foreign caregiver |
Photocopies of the front and back sides of the Disability Certificate (or Card) valid for 2019 |
| (2) Having professional assessment by a designated medical institution and being eligible for employing a foreign caregiver |
A photocopy of the "Diagnosis Certificate of Illness and Disability" obtained prior to June 1, 2020(extend to June 30, 2020) |
||
The Bureau further explained that the matters needing attention for staying in residential service institutions and using long-term care benefits and payment for standard services are as follows:
A. Staying in residential services institutions
1. Staying in qualified residential service institutions, including senior citizens’ welfare institutions (excluding nursing beds), veteran homes of the Veterans Affairs Council (excluding nursing beds), disability residential institutions, and nursing home institutions (general nursing home and psychiatric nursing home), institutional residential services long-term care institutions established in accordance with the Long-Term Care Services Act, and integrated services long-term care institutions with institutional residential services.
2. Staying in a residential service institution in 2019 must reach 90 days in the year.
3. A copy of the payment receipt for at least 90-day accumulative stay in 2019 must be submitted.
4. Those who are fully subsidized must submit the local government’s official letter of state-financed placement or relevant supporting documents.
5. The name of the institution, the name of the resident, the ID number, and the period of stay must be noted in the documents. In addition, for those staying in the senior citizens’ welfare institutions or the veteran homes of the Veterans Affairs Council, bed service types must be noted in the documents.
B. Use of long-term care benefits and payment for standard services
1. A copy of any payment receipt for the use of the service in 2019 must be submitted.
2. Those who are exempt from copayment must submit the official letter of the long-term care management center or relevant supporting documents.
3. The name of the special service unit, the name of the disabled person, the ID number, and the level of disability must be noted in the documents.
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. 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 visit the Bureau’s website (long-term care special deductions section at https://www.ntbk.gov.tw), or call the Bureau’s toll-free service number 0800-000321.
Contact: Mrs. Chang, the Revenue Officer of the Second Examination Division
TEL:07-7256600 ext.7256