The National Taxation Bureau of the Northern Bureau, Ministry of Finance, states that during the comprehensive income tax filing period, members of the public often assume that if their total annual income falls below the tax threshold and no tax has been withheld, they belong to the “no tax due, no refund” category and do not need to file a return. However, the Bureau would like to remind citizens that, starting from the 2018 tax year, individuals receiving dividends or surpluses distributed by companies, cooperatives, or other legal entities can choose to include this income into their total taxable income; a 8.5% tax credit will be calculated on the dividend amount, with a maximum credit limit of NT$80,000 per filing household. Therefore, if your dividend income is included in your consolidated income, even if the total amount is not high, completing the tax filing process may actually result in a tax refund.

The Bureau pointed out that a local resident, Mr. Chang, recently inquired whether he was exempt from filing an income tax return since his total income for the 2025 tax year was only NT$250,000, which is well below the tax threshold. Upon further investigation, the Bureau found that a portion of Mr. Chang’s income came from stock dividends. For small stock investors like Mr. Chang with relatively low total income, the tax credit on their dividend income often exceeds their tax payable. The difference between the two can then be claimed as a tax refund. Under the guidance of the Bureau’s staff, Mr. Chang successfully completed his tax filing and received this unexpected tax refund windfall.

The Bureau would like to emphasize that the tax authority will not automatically issue refunds; taxpayers must complete the income tax filing procedures in accordance with the law, and refunds can only be issued after the return is verified and approved. Therefore, citizens with dividend income are urged to pay attention to whether they are eligible for a tax refund, even if their income does not meet the tax threshold. Furthermore, when filing, it is recommended to opt for “Direct Deposit (Account Transfer) Refund.” By simply filling in a deposit account at a financial institution or post office, the tax refund will be directly credited to the designated account on the tax refund day. This is not only safe and time-saving, but it also eliminates the hassle of traveling to a financial institution to cash a refund check. If there are any further questions, please call the toll-free service hotline at 0800-000321 for consultation.

〔Contact person：Ms. Wang, Section Head of Collection and Information Management Division.; Tel：(03)3396789, ext. 1180〕