Tax Filing Deadline Extended to End of June
Attention to 6.8 million taxpayers filing Comprehensive Income Tax! The tax filing season in May is approaching, and this year’s new tax regulations bring several changes, including adjustments to basic living expenses, exemptions, standard deductions, and special deductions in response to rising prices; rent expenses now categorized under special deductions; and increased deductions for preschool children, among others. What other tax-saving items can help taxpayers reduce their tax burden? This article will provide you with all the details.
In response to the high tariffs policy in the United States, Premier Su Tseng-chang instructed the Ministry of Finance during the Executive Yuan meeting on April 10 to consider extending the May tax filing deadline, similar to the period during the Covid-19 pandemic, with a report to be submitted at an appropriate time. Therefore, the original tax payment deadline from May 1 to May 31 will be extended by one month to June 30, alleviating the economic pressure on the public regarding tax filing.
How is Comprehensive Income Tax Assessed?
Comprehensive Income Tax adopts an “automatic declaration system,” where taxpayers must declare their total annual income for the previous year. It also follows a “household reporting system,” meaning that besides the taxpayer, if there is a spouse, they must generally file jointly, while in the 113th year, couples who marry or divorce have the option of filing jointly or separately.
Dependent relatives must meet specific criteria; for example, direct relatives (grandparents, parents) aged 60 and above can be declared directly, while those under 60 must meet the condition of lacking a means of livelihood. Children under 18 can be declared directly, while those 18 and older must meet conditions related to schooling, disabilities, or lack of a means of livelihood. Additionally, if dependents have income, it must be included in the taxpayer’s total income for declaration.
For detailed information on declaring dependents, see: Ministry of Finance Simplified Guide.
Good News for Singles! Annual Income Below NT$446,000 is Tax-Free
According to reports from Central News Agency, for this year’s Comprehensive Income Tax declaration, the general exemption amount, standard deduction for singles, special deduction for wage earners without rent, totals NT$446,000. Singles with an annual income below NT$446,000 generally do not need to pay taxes if there are no other income influences; however, if there are other tax amounts, they still need to file for a tax refund. For singles who rent, the tax-free threshold is NT$626,000. For dual-income households without dependents, the tax-free threshold is NT$892,000, and for families with two children under six years, it is NT$1,461,000.
What Are the Five Major New Regulations in 2025?
- Basic Living Expenses Increased to NT$210,000: Basic living expenses represent the essential amount needed for an individual or family over a year. According to Zhang Qi-jin, Deputy General Manager of EY Family Office, the guaranteed basic living expense for each member of this year’s filing household has increased to NT$210,000, an increase of NT$8,000 compared to last year.
- Exemption Amount and Deductions Adjusted: The general exemption amount for the 113th year is raised to NT$97,000, an increase of NT$5,000; the standard deduction is raised to NT$131,000, an increase of NT$7,000; and the exemption amount for seniors over 70 is increased to NT$145,500, an increase of NT$7,500.
- Income Tax Bracket Adjustments: The income tax brackets for the 113th year have been significantly adjusted. This year, the tax rate for the 5% bracket is for incomes below NT$590,000, relaxed from last year’s NT$560,000; the highest 40% bracket is raised from NT$4.72 million to NT$4.98 million.
| Bracket | Net Comprehensive Income (NTD) | Tax Rate | Cumulative Difference |
|---|---|---|---|
| 1 | Below 590,000 | 5% | 0 |
| 2 | 590,001 – 1,330,000 | 12% | 41,300 |
| 3 | 1,330,001 – 2,660,000 | 20% | 147,700 |
| 4 | 2,660,001 – 4,980,000 | 30% | 413,700 |
| 5 | Above 4,980,001 | 40% | 911,700 |
Net Comprehensive Income Calculation = Total Comprehensive Income – Exemption – Standard or Itemized Deductions – Special Deductions – Basic Living Expenses Difference
4. Expanded Rent Expense Deduction: The general deduction category of “itemized deductions” has been changed to “special deductions,” making it easier to apply. The limit has been increased from NT$120,000 to NT$180,000. This means that taxpayers who had rent expenses but chose the standard deduction because the total amount of itemized deductions was less than the standard deduction can now apply for the rent expense deduction, and the amount is higher than before.
5. Special Deduction for Preschool Children: To encourage childbirth, the special deduction for preschool children has become more favorable. The income limit condition has been removed, and the applicable age has been expanded from under 5 years to under 6 years. Additionally, the deduction amount has increased from NT$120,000 per child to NT$150,000; for the second child and beyond, each can deduct NT$225,000. For example, a family with children aged 6 and 4 can deduct a total of NT$375,000 (NT$150,000 + NT$225,000).
For complete details on new filing regulations, tax calculations, and the filing process, see: 2025 Tax Filing Simplified Guide | When does tax filing start? Steps for tax calculations and the four major new regulations at a glance.
Tax Saving Section: What are Standard and Itemized Deductions?
Within Comprehensive Income Tax, “general deductions” are divided into standard deductions and itemized deductions. Taxpayers can only choose one type for filing. The difference between the two is that standard deductions do not require proof, while itemized deductions require supporting documents. The standard deduction is a fixed amount deducted regardless of income level. For the 113th year, the amount is NT$131,000 for singles and NT$262,000 for those filing jointly with a spouse. Itemized deductions have no upper limit and are verified by expenditure proof. Taxpayers can claim deductions for donations, insurance premiums, medical and childbirth expenses, disaster losses, mortgage interest, disabilities, education tuition, and long-term care, among eight categories of itemized deductions.
For details on itemized deductions, see: Ministry of Finance National Tax Saving Handbook. What should be filed to effectively save on taxes? According to the Ministry of Finance, it depends on whether the total amount of itemized deductions paid by members of the same reporting household during the 113th year exceeds the standard deduction amount. If confirmed, choosing itemized deductions and providing supporting documents for filing can lead to tax savings.
Tax Saving Section: Who Are the Eligible Beneficiaries of Eight Special Deductions?
In addition to general deductions, taxpayers can also reduce taxes through eight special deductions. This year’s adjustments compared to last year include:
- Wage Income, Disabilities: Due to rising prices, the amount has been raised from NT$207,000 to NT$218,000.
- Rent Expenses: Moved from itemized deduction to special deduction, with a household limit increased from NT$20,000 to NT$180,000, and a new income limit clause added.
- Preschool Children: Applicable age expanded from 5 years to 6 years, with the income limit clause removed; the deduction has increased from NT$120,000 per child to NT$150,000 for the first child and NT$225,000 for the second and subsequent children.
Five Steps! Mobile Tax Filing Tutorial at a Glance
Citizens can choose to file taxes at a counter or online. For online tax filing, the Ministry of Finance offers a simple five-step tutorial for quick mobile filing:
- Step 1: Verify Identity
Provide mobile phone verification, household number + inquiry code, and mobile citizen certificate. (Click here to see how to obtain the inquiry code?) - Step 2: Fill in Information
Confirm taxpayer’s basic information, add spouse and dependent relative information. - Step 3: Confirm Tax Amount
View total Comprehensive Income Tax amount and withheld tax information. - Step 4: Pay or Refund Taxes
Provide six payment methods, including mobile payment/electronic payment accounts, entrusted withdrawal transfer payment, ATM payment, credit card payment, current (savings) account payment, and cash or check. Two refund methods are available, including direct transfer refund and voucher refund. - Step 5: Complete Declaration
Download and keep the receipt securely.
Click here to enter the declaration website (opens May 1).
Image / Ministry of Finance Facebook
This article is reproduced in collaboration with: Digital Age
Source: Ministry of Finance, EY Accounting Firm