Tax Filing Deadline Extended to End of June
Attention 6.8 million individuals filing comprehensive income tax returns! The tax season for May is approaching, and this year’s new tax system introduces several changes. These include an increase in basic living expenses, exemptions, standard deductions, and special deductions in response to rising prices; rental expenses can now be included as special deductions, and the deduction for preschool children has been raised. What other tax-saving items can help taxpayers reduce their tax burden? This article provides you with a complete overview.
In response to the high tariff policies of the United States, Premier Su Tseng-chang directed the Ministry of Finance on April 10 to consider extending the tax filing period, similar to the approach during the Covid-19 pandemic. A relevant report will be submitted at an appropriate time. As a result, the original tax filing deadline, which was from May 1 to May 31, will be extended by one month to June 30, alleviating the financial pressure on taxpayers.
How is Comprehensive Income Tax Calculated?
Comprehensive income tax adopts an “automatic reporting system,” where taxpayers must report their total income for the previous year. It is also a “household reporting system,” meaning that in addition to the taxpayer, a spouse is generally required to file jointly. For the 113th year, couples who marry or divorce can choose either joint or separate filing.
Dependent family members must meet specific criteria. For instance, direct relatives (such as grandparents or parents) over 60 years old can be directly claimed, while those under 60 must meet conditions such as lack of financial independence. Children under 18 can be directly claimed, while those 18 or older must be enrolled in school, have disabilities, or lack financial independence. Additionally, if dependents have income, it must be included in the taxpayer’s total income and filed together.
For detailed instructions on claiming dependents, refer to the Ministry of Finance’s guide.
Good News for Singles! No Tax for Annual Income Under NT$446,000
According to a report by Central News Agency, for this year’s tax filings, the general exemption, standard deduction for singles, and special deduction for salary income, if no housing rental costs are involved, total NT$446,000. Singles earning less than NT$446,000 annually will generally not need to pay taxes, assuming no other income affects the calculation. However, if there are other taxes due, a refund may still be claimed upon filing.
For single individuals who rent, the tax-free threshold is NT$626,000. Other households, such as dual-income families without dependents, have a tax-free threshold of NT$892,000, while a household supporting two children under 6 years old has a threshold of NT$1,461,000.
What Are the Five Major New Tax Policies for 2025?
1. Basic Living Expenses Increased to NT$210,000
The basic living expenses, which represent the basic amount required for an individual or household’s needs over the course of a year, have been increased to NT$210,000 per person. According to Zhang Qijin, Deputy General Manager of Ernst & Young Family Office, this increase provides non-taxable protection, which is NT$8,000 more than last year.
2. Increased Exemptions and Deductions
The general exemption for the 113th year has been raised to NT$97,000, an increase of NT$5,000 from last year. The standard deduction has increased to NT$131,000, a rise of NT$7,000. The exemption for seniors aged 70 and above has been raised to NT$145,500, up by NT$7,500.
3. Adjustments to Income Tax Brackets
The income tax brackets for the 113th year have undergone significant adjustments. For example, the 5% tax bracket applies to income up to NT$590,000, compared to last year’s NT$560,000, thus offering a slight relaxation. The highest tax bracket of 40% applies to income over NT$4.98 million, an increase from NT$4.72 million last year.
Tax Bracket Table
| 1 | NT$590,000 or less | 5% | NT$0 |
| 2 | NT$590,001 to NT$1,330,000 | 12% | NT$41,300 |
| 3 | NT$1,330,001 to NT$2,660,000 | 20% | NT$147,700 |
| 4 | NT$2,660,001 to NT$4,980,000 | 30% | NT$413,700 |
| 5 | NT$4,980,001 or more | 40% | NT$911,700 |
Comprehensive Income Net Calculation = Total Comprehensive Income – Exemption – Standard or Itemized Deductions – Special Deductions – Basic Living Expenses
4. Rental Deduction Expanded
Rental expenses have been moved from “itemized deductions” to “special deductions,” making it easier to apply. The cap has been raised from NT$120,000 to NT$180,000.
5. Increased Deduction for Preschool Children
To encourage childbirth, the special deduction for preschool children has been enhanced. The age limit has been raised from under 5 years old to under 6 years old, and the deduction amount has increased. For children aged 6 and under, the deduction per child is NT$150,000, while for the second child and subsequent children, the deduction is NT$225,000 each.
For example, a family with a 6-year-old and a 4-year-old can deduct NT$375,000 (NT$150,000 + NT$225,000).
Complete New Tax Filing System, Comprehensive Income Tax Calculation, Filing Process
For detailed information, refer to the 2025 Tax Filing Guide.
Tax-Saving: What Are Standard and Itemized Deductions?
Comprehensive income tax deductions are categorized into standard deductions and itemized deductions. Only one of them can be chosen when filing taxes. The difference is that the standard deduction requires no documentation, while itemized deductions require supporting evidence.
The standard deduction for singles in the 113th year is NT$131,000, and for joint filers, it is NT$262,000.
Itemized deductions, however, do not have an upper limit and require supporting receipts for verification. These include donations, insurance premiums, medical and childbirth expenses, disaster losses, mortgage interest, disability, education fees, and long-term care expenses. Taxpayers may claim deductions based on these items.
For detailed information, see the Ministry of Finance’s Tax Saving Handbook.
Tax-Saving: 8 Major Special Deductions and Who Can Benefit
In addition to general deductions, there are 8 special deductions that can reduce taxes. This year’s adjustments include:
- Salary income and disability deductions have increased from NT$207,000 to NT$218,000 due to rising prices.
- Rental deductions have moved from itemized deductions to special deductions, with the cap raised from NT$20,000 to NT$180,000, and a new income-based exclusion clause added.
- The preschool deduction has expanded the applicable age from 5 years old to 6 years old, and removed the income exclusion clause. The deduction amount has increased: NT$150,000 for the first child and NT$225,000 for the second and subsequent children.