The National Taxation Bureau of Kaohsiung, Ministry of Finance announces that housing rental expenses have been reclassified as a special deduction. When filing income tax returns for the 2024 fiscal year, taxpayers who choose the standard deduction can also claim this deduction, effectively reducing the tax burden on renters.

The Bureau explains that if taxpayers are residents in the same taxable year, they, their spouses, or dependent lineal relatives do not own houses in the R.O.C. and need to rent housing for their own residence （not for business or professional use）, each household filing income tax can claim a special deduction for rent for housing after deducting government rental subsidies, up to a maximum of NT$180,000 per year. Considering special circumstances, if taxpayers, their spouses, or dependent lineal relatives own property in the R.O.C. that meets one of the five conditions outlined in the Ministry of Finance Decree Tai Cai Shui Zi No. 11304656750 issued on December 3, 2024 （such as: homes damaged or destroyed due to disasters, inherited co-owned property, or situations involving employment, education, medical needs, court-ordered spousal separation, or domestic violence）, they may still qualify for this deduction.

The Bureau further explains that taxpayers, spouses, and dependent lineal relatives who do not own houses in the R.O.C. should submit the following documents when claiming special deduction for rent for housing for the 2024 fiscal year:
1. The housing rental contract.
2. Proof of rental payment （such as: receipts signed by the landlord, ATM transfer transaction details, or remittance certificates）.
3. Proof of household registration of the taxpayer, spouse, or dependent lineal relatives at the leased address during the taxable year, or a written affidavit from the taxpayer stating that the leased house is for self-residence and not for business or performing professional services during the taxable year（either one of the two is required）.
4. Relevant supporting documents for those who qualify under any of the five conditions considered as "non-ownership" as defined by the Ministry of Finance.

Finally, the Bureau reminds taxpayers that there are exclusion conditions for the special deduction for rent for housing, including:
1.Individual income tax rate applicable at or above 20% （including salary income or various types of income calculated separately for the taxpayer or spouse）.
2.Opting for the single tax rate of 28% on the total amount of the dividents and earnings computed separately.
3.Basic income amount calculated according to the Income Basic Tax Act  exceeding the stipulated deduction amount of NT$7.5 million.

For further inquiries, please call the toll-free service hotline 0800-000-321 or visit the Bureau's website （https://www.ntbk.gov.tw） to make inquiries online using the National Tax Smart Assistant “National Tax Helper.”

Provided by: First Individual Income Tax Section
Contact person: Section Chief, Mr. Feng.   Phone number: （07）7256600 ext. 7270
Contributor: Ms. Lee.                                   Phone number: （07）7256600 ext. 7222