The Ministry of Finance (MOF) made an announcement regarding the amounts of basic income eligible for an exemption from Income Basic Tax and related deductions for 2022 according to the Income Basic Tax Act on 24 November 2021.
The MOF states that, in accordance with the Income Basic Tax Act, if the total increase of the Consumer Price Index (CPI) has reached 10% or higher compared to the index of the last adjusted year, the following amounts should be adjusted:
1. the amount of basic income eligible for exemption from Income Basic Tax and the amount of deductions for the purpose of calculating the income basic tax of a profit-seeking enterprise,
2. the amount of basic income eligible for exemption from Income Basic Tax and the amount of deductions for the purpose of calculating the income basic tax of an individual, and
3. the amount of insurance payment made upon the death of an insured person, which can be excluded when calculating the basic income of an individual.
As the increase of the applicable 12-month (November 2020 to October 2021) average CPI does not meet the said 10% condition, no adjustment should be made to the aforementioned amounts for 2022, and those amounts announced by the MOF for 2021 (NT$500,000/ NT$6,700,000/ NT$33,300,000) remain in effect for 2022.
The MOF further states that those aforementioned amounts for 2022 apply to taxpayers when filing 2022 income tax returns in 2023.
Press Release Contact: Mr. Liu, Senior Executive Officer and Ms. Chiu, Section Chief
Phone: 02 -2322-7556/02-2322-8423