By Crystal Hsu / Staff reporter
Taiwan plans to expand tax breaks for families with children and is reviewing the next phase of its flagship first-time homebuyer mortgage program as the government steps up efforts to address demographic decline and housing affordability concerns.Minister of Finance Chuang Tsui-yun (莊翠雲) told the legislature’s Finance Committee yesterday that the ministry has submitted amendments to the Income Tax Act (所得稅法) to the Executive Yuan. The proposal would raise the personal income tax exemption for each dependent child under the age of 18 by 50 percent, increasing it from NT$101,000 (US$3,199.85) to NT$151,500, pending legislative approval.If passed this session, the changes would take effect for the 2026 tax year, allowing taxpayers to claim the higher deduction when filing returns next year, Chuang said.
Minister of Finance Chuang Tsui-yun speaks at a meeting of the legislature’s Finance Committee in Taipei yesterday.
Taiwan has one of the world’s lowest birth rates, prompting policymakers to roll out a range of measures aimed at reducing the financial burden of raising children and encouraging family formation.Lawmakers have introduced 28 separate bills related to child tax deductions, with some arguing the government’s proposal does not go far enough.
