Attention, renters! Starting from 2024, rent for housing may be filed as a special deduction in individual income tax returns, with a deductible amount of up to NT$180,000, no matter whether you choose to apply the standard deduction or itemized deduction while filing. The National Taxation Bureau of the Southern Area, Ministry of Finance, reminds taxpayers that photocopies of the lease contract, payment receipts, and proof documents of self-used residence shall be attached since such a deduction is not included in the deductions list for reference.
The Bureau indicated that special deduction for rent for housing may be filed only in the case that the rent is paid by a taxpayer, his (her) spouse, and lineal dependent(s) who don’t own any house in the R.O.C., nor use their own residence for business or performing professional services. The deduction may be deducted from their consolidated income to the extent of NT$180,000 per year per tax return, not including government subsidy. However, the taxpayer is not eligible for the special deduction for rent for housing under any of following conditions: (i) The taxpayer’s tax rate is equal to or greater than 20%. (ii) A taxpayer opts to calculate the tax payable on the total amount of dividends and earnings from his or her gross income separately with the single tax rate of 28%. (iii) The amount of basic income of the taxpayer is greater than NT$7,500,000.
The Bureau offers the following example to illustrate the calculation. Mr. A was single and didn’t own a house. His rent for housing was NT$300,000 in 2024, with NT$48,000 received in government subsidy. Mr. A may file the special deduction for rent for housing of NT$180,000 (NT$300,000-NT$48,000 > NT$180,000) when filing 2024 individual income tax return. To claim the deduction, he must provide the following documents: Photocopies of the lease contract and payment receipts (such as a signed receipt from the landlord, ATM transaction receipts, or remittance papers); the certificate of a family member that the taxpayer, his (her) spouse, or lineal dependent(s) maintained the household registration at the leased house during the taxable year; or an affidavit from the taxpayer declaring that the leased house was used for self-used residence only rather than for business or performing professional services during the taxable year.
The Bureau further explained that if the taxpayer, his (her) spouse, or lineal dependent(s) who own a house in the R.O.C., the taxpayer is generally not eligible for the special deduction for rent for housing. Unless the self-owned house meets one of the five conditions mentioned in Explanatory Decree NO. 11304656750 by the Ministry of Finance, in which the self-owned house is deemed non-self-owned house, the taxpayer can claim the special deduction. The five conditions and required proof documents could be referred from the appendix. For any questions, please feel free to 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