Taipei, The Cabinet approved Thursday a draft bill that if passed will provide an annual NT$120,000 (US$3,892) income tax deduction to taxpayers with family members who have physical or mental disabilities and require long-term care.
Speaking to reporters at the Executive Yuan, Taxation Administration Director-General Lee Ching-hua said the bill is part of the government's long-term care plan.
Taxpayers who need to look after a disabled spouse or family member will benefit from the newly introduced "special tax exemption for long-term care" when filing their personal income taxes, Lee said.
However, the benefit will not be available to those in the 20 percent income bracket and above or taxpayers whose basic income exceeds NT$6.7 million, she added.
The draft bill will be submitted to the Legislative Yuan for review during the current legislative session.
If approved, the tax exemption is expected to benefit about 290,000 taxpayers and reduce the government's tax revenue by NT$2 billion per year, according to the Cabinet.
According to Cabinet spokeswoman Kolas Yotaka, the bill is part of the government's long-term care plan, and taxpayers will be eligible for the deduction whether they hire caregivers to take care of their loved ones, send them to a long-term care institution, or take care of them by themselves.
Source: Focus Taiwan News Channel