Taipei-Taiwan's Legislative Yuan passed a bill Monday that will provide an annual NT$120,000 (US$3,870) in income tax deduction to taxpayers with family members who have physical or mental disabilities and require long-term care or who need it themselves, and an estimated 290,000 taxpayers are expected to benefit from the bill.
The amendments to Article 17 of the Income Tax Act that make taxpayers, spouses or other family members eligible for the deduction if they are deemed disabled by health authorities were proposed by the Ministry of Finance in response to the declining birth rate and aging population in Taiwan.
However, people above the 20 percent income tax bracket and those whose basic income exceeds NT$6.7 million would not be eligible for the deduction, according to the amended law.
The tax exemption rule is estimated to benefit about 290,000 taxpayers and reduce the government's tax revenue by NT$2 billion per year, according to the ministry.
The bill is part of the government's long-term care plan, and taxpayers will be eligible for the deduction whether they hire in-home caregivers, send their loved ones to a long-term care facility, or take care of them by themselves, according to the Cabinet.
Source: Focus Taiwan News Channel