The National Taxation Bureau of the Southern Area, Ministry of Finance, stated that in response to the issue of declining birthrates, and to help alleviate the economic burden on families with dependent children, the special deduction for pre-school children in 2024 individual income tax has been revised. The wealth-based exclusion rule has been abolished, and the deduction amount for each pre-school child has been increased. The amount of deduction for the first pre-school child is NT$150,000; for the second child and subsequent children, the deduction amount has been increased by 50%, allowing a deduction amount of NT$225,000 per child. Additionally, the age limit for eligible children has been expanded to 6 years old.

For example, Mr. A has two children, born in 2018 and 2022, respectively. When filing his 2024 individual income tax return, even though his applicable tax rate is 40%, he can still claim the special deduction of NT$375,000 (NT$150,000+NT$225,000) for his two pre-school children.

The Bureau emphasizes that taxpayers who meet the following two special conditions are also eligible to claim the special deduction for pre-school children:
I. Grandparents: If the parents of a child under or equal to 6 years of age are unable to support the child due to death, disappearance, long-term prison sentence, or declaration of suspension of parental rights, and the child is actually being supported by the grandparents, the grandparents may claim the deduction.
II. Guardians: If a taxpayer or his/her spouse has been designated as the guardian of a child under or equal to 6 years old by a court ruling and has registered the guardianship with the household registration office, they are  eligible to claim the deduction.

Taxpayers filing their 2024 individual income tax returns should pay special attention to relevant regulations to ensure their rights are not overlooked. For any questions, please contact any branch or office of the national taxation bureaus during business hours or call the toll-free service hotline at 0800-000-321.

Press Release Contact: Ms. Lin
Individual Income, Estate and Gift Tax Division
TEL: 06-2223111 ext.8065