2014-04-29 16:03:46

Finance Committee of Legislative Yuan will scrutinize the draft bill on increase/decrease taxes proposed by Executive Yuan. High-earning individuals, stock investors, banks and insurance agencies are the targets of the tax increase. Taxes decrease for salary earners, physically disabled and businesses that increase new hires and care about Research and Development. If the bill is passed, the business tax will be increased in the following month for banks and insurance agencies. The halved tax credit rate for dividend income and “wealthy tax” will take effect in 2015. There will be 6 tax brackets for individual income tax with 45% as the highest tax rate, which is applicable to individuals whose annual income exceeds 10 million New Taiwan dollars (around US$329,161). The integrated tax system is adjusted. The rate of the tax credit that can be claimed if one is subject to both business income and dividend taxes is reduced from the current 100% to 50%. The business tax for banks and insurance agencies will be back to 5%. The tax reduction includes special deductable amount increased to 120K NTD for salary earners and physically disable; the salary expense deductable is increased to 130% for businesses increasing new hires and deductable rate of 10% for increased R&D.