Consolidated income tax of an individual shall be levied on the amount of his net consolidated income which shall be the gross consolidated income minus the amount of tax-exempt income, and various deductions.

The gross amount of consolidated income of an individual shall be the aggregate of the following categories of income for the whole year:
Category 1:
Business Income: the dividends received by each shareholder of a company, the earnings received by each member of a cooperative, the earnings received by each investor of other juristic person and the earnings payable each year to each partner of a profit-seeking partnership, the earnings derived in each year by a sole proprietor from the operation of business, and the earnings derived by an individual from incidental trading activities shall all come under this Category of income.
The earnings payable to a partner or the earnings derived by a sole proprietor from the operation of business shall be the assessed amount of the profit-seeking enterprise income.
Category 2:
Income from professional practice: any income of an individual from professional practice or performances after deduction of the rental for or depreciation of the place of business, depreciation of and repairing expenses for the facilities and equipment required for business, or the cost of medications, supplies, etc. sold to clients, salaries and wages for employees required for business, travelling expenses for practicing the profession and other direct and necessary expenditures, shall be the actual amount of income in this category.
Any individual engaged in professional practice shall at least keep a journal as his accounting book to provide detailed entries of all the operating revenues and expenses. For all business expenditures, documents of positive evidence shall be secured. The documents of evidence and account book shall be kept for a period of at least five years. Measures regarding the setting up, acquisition, and maintenance of the documents of evidence and account books and other related matters shall be prescribed by the Ministry of Finance.
Depreciation of buildings, facilities, and equipment used in professional practice shall be calculated in accordance with the Table of Service Life of Fixed Assets. The relevant provisions with respect to profit-seeking enterprise income tax of this Act shall be applicable, mutatis mutandis. Measures regarding the inspection of the documents of evidence, recognition of the revenues and expenses from professional practice and their account books and other related matters shall be prescribed by the Ministry of Finance.
Category 3:
Income from salaries and wages: any income from salaries and wages of public functionaries, teachers, military personnel, policemen, staff employees and workers of public and private enterprises and any income earned by persons rendering services:
1. The amount of Income from salaries and wages shall be all salaries and wages earned for performing duties or doing works after deducting the special deduction of income from salaries/wages as provided in Item 3-2, Subparagraph 2, Paragraph 1 of Article 17. If the balance is a negative figure, the amount of income from salaries and wages shall be counted as zero. However, if the total amount of the following necessary expenses which are directly related to services rendered and paid by the income receiver exceeds the deduction amount, the income receiver should submit relevant supporting documents so that these necessary expenses can be deducted from salaries and wages, and the amount of income shall be the balance after such a deduction :
(1) Vocational clothing expenses: The expenses of purchase, rental, cleaning, and maintenance of special clothing which must be worn for performing an occupation or performance costumes. The annual deduction for each person is limited to 3% of the total salaries and wages in performance of his (her) vocation.
(2) Upgrading training expenses: The training expenses of participating in courses at specified institutions for the specific skills or expertise which is required to perform duties, do work or follow legal requirements. The annual deduction for each person is limited to 3% of the total salaries and wages.
(3) Vocational tool expenses: The expenses incurred in purchasing books, periodicals, and tools for performing duties or doing work. If the efficiency of vocational tools is not exhausted within two years and the expenditure exceeds a certain amount, such tool shall be depreciated or amortized. The annual deduction for each person is limited to 3% of the total salaries and wages in performance of his (her) vocation.
2. The provisions regarding the special deduction of income from salaries/wages as provided for in Item 3-2, Subparagraph 2, Paragraph 1 of Article 17 shall not apply to the income from salaries and wages calculated in accordance with the provisions of the preceding subparagraph when calculating the tax payable in accordance with Article 15 and calculating the net consolidated income in accordance with Article 17.
3. The regulations governing the scope, recognition, and documentary evidence of any one of the expenses are listed under subparagraph 1, the specified institutions under subparagraph 2, a certain amount and the method, and useful years of depreciation or amortization under subparagraph 3, and other related matters shall be prescribed by the Ministry of Finance.
4. Salaries and wages as provided in subparagraph 1 shall include salaries, stipends, wages, allowances, annuities, cash awards, bonuses and all kinds of subsidies, whereas, the money received for performing duties for the employer as traveling expenditures, daily allowance and overtime pay not in excess of the prescribed amounts and the incomes which are exempt from income tax as prescribed under Article 4 of this Act shall be excluded.
5. The lump sum of the voluntary pension contribution and the voluntary annuity insurance premiums according to the Labor Pension Act, up to 6% of by an employee's monthly wage or salary may be deducted from the employee's taxable salary or wage in the year concerned; the voluntary annuity insurance premiums made by an employee shall not apply to the insurance premiums deduction under Article 17.
Category 4:
Income from interest: any income from interest on public debts, corporate bonds, financial, various kinds of short-term commercial papers, deposits and other loans:
1. Public debts shall include bonds, treasury notes, securities, and other notes issued by governments of all levels;
2. Prize money from raffle-savings in excess of the amount of savings shall be deemed as income from interest on deposits:
3. Short-term commercial papers shall include one-year or less treasury bonds, transferable time deposit certificates issued by banks, promissory notes and bills of exchange issued by companies and government-owned enterprises, and other short-term certificates of indebtedness approved by the authority in charge of the specific end enterprise.
The portion of the pecuniary amount realized by the short-term commercial papers at their maturity in excess of the selling price at their initial issuance shall be deemed as income from interest such income shall not be added to the gross consolidated income, but withheld in accordance with the provision of Article 88.
Category 5:
Income from lease and from royalties: any income from lease of property, from utilization of money obtained as the price of a lien on property, or from royalties on patents, registered trademarks, copyrights, secret formulas, and all kinds of franchise made available for use by others:
1. Amount of income from lease of property and from royalties shall be the whole year's income after deduction of necessary losses and expenditures;
2. Any income derived from long-lasting tenant right and superficies created for fixed terms shall be deemed as income from lease;
3. For money received in the form of rental deposit or in other similar forms for lease of property, and for money received as the price of a lien created on property, to calculated the income from lease the prevailing bank interest rate for one-year-term deposit shall be used as a basis;
4. Income tax on revenue from lease calculated in accordance with the local prevailing rental standard shall be paid for properties lent to others for use, unless it can be verified that no payment is made and the properties involved are not being used for business or for carrying out professional services;
5. The revenue from lease will be upward adjusted by the collection authority according to the local prevailing rental standard if the contracted rental of the lent properties was obviously too low in comparison with the local prevailing standards.
Category 6:
Income from self-undertaking in farming, fishing, animal husbandry, forestry and mining-amount of income shall be the whole year's income after deduction of necessary expenses.
Category 7:
Income from property transactions: any income derived from transactions of property and right:
1. Where the property or right was originally acquired at a price, amount of the income shall be the transaction price after deduction of original cost and all expenses necessary for acquisition, improvement and ownership transfer of that asset;
2. Where the property or right was originally acquired through succession or donation, amount of the income shall be the transaction price after deduction of value prevailing at time of succession or donation and all expenses necessary for acquisition, improvement and ownership transfer of that property or right;
3. One-half of the amount of income of an individual derived from transactions in registered stocks or registered corporate bonds issued by a company limited by shares, or public bonds issued by governments of all levels, or development bonds issued by banks under the approval of government, if the individual has held such stocks or bonds for a period of one year or longer, shall be considered as a part of his income in the taxable year, while the other one-half shall be exempted from income tax.
Category 8:
Income from contests and games and from prizes and awards won by chance: any income derived from prizes or awards in contests or lotteries shall be included in the category:
1. All expenses necessary for participating in contests or games are permitted to be deducted;
2. All costs necessary for participating in lotteries are permitted to be deducted;
3. Prize money from lottery tickets under the auspices of the government, except that tax payable shall be withheld in accordance with the provision of Article 88, shall not be included in the gross consolidated income.
Category 9:
Separation income: The retirement pay, severance pay, separation pay, resignation pay, life-time pension , the old-age pension not covered by insurance benefits and the insurance payment made under annuity insurance according to the Labor Pension Act received by a person, but not including the following: receipt of the savings made by said person from taxable income of his or her salary every year; the insurance payment from the voluntary annuity insurance premiums according to the Labor Pension Act every year; and/or the interest accrued from the savings and the premiums.
1. If received in one lump sum, the income amount is calculated as follows:
(1) If the total amount received in one lump sum is less than NT$150,000 multiplied by the number of service years at the time of separation, the income amount shall be considered zero;
(2) If the total amount received in one lump sum is more than NT$ 150,000 multiplied by the number of service years at the time of separation, half of the portion of the amount over NT$ 150,000 but less than NT$ 300,000 multiplied by the number of service years at the time of separation shall be the income amount;
(3) The portion of the amount over NT$ 300,000 multiplied by the number of service years shall totally be considered the income amount. The last digit of the number of service years, if less than 6 months, shall be calculated as half a year and, if over 6 months, as one year.
2. If received by installments, the income amount shall be the balance of the total amount of all installments received in one year with the deduction of NT$650,000;
3. If portion of the separation income is received in one lump sum and portion by installments, the deductible amount mentioned in Item 2 above shall be calculated in proportion to the amounts received in one lump sum and by installments respectively.
Category 10:
Other income: amount of any income other than the aforesaid after deduction of necessary expenses and costs. However, the reward for information or accusation and income from transactions in structured products between individuals and securities firms or banks shall not be added to the gross consolidated income, but withheld in accordance with the provisions of Article 88.
Where any of the aforesaid categories of income is earned in kind, in the form of valuable securities or in foreign currencies, the amount of income shall be computed at the prevailing price or exchange rate prescribed or recognized by the government or in the absence thereof, at the respective actual local value at time of receipt.
Any variable income such as that derived from self-undertaking in forestry, or from old age pensions or retirement pensions or alimony paid in lump sum, or remuneration in lump sum distributed after each trip to the employed for fishing in the high seas or compensation received for returning the leased farm land in accordance with the provision of Article 77 of the Statute for Equalization of Urban Land Rights, among an individual's gross consolidated income may be subject to taxation at a half of the amount thereof in the taxable year of income.
If the increase of consumer price index accumulates to 3% or more over the figure last adjusted, the amounts stipulated in Category 9 of Paragraph 1 above shall be adjusted accordingly and the adjustment shall be made at the rate of NT$1,000 as a basic unit with the hundreds rounded off if the adjusted amount is less than NT$1,000. As to the method of publication and the consumer price index mentioned above, the provisions in Paragraph 4, Article 5 hereof shall apply.

From January 1, 2007, Income received by an individual from interest on government bonds, corporate bonds, and financial bonds shall not be added to the gross consolidated income, but withheld in accordance with the provisions of Article 88.
From January 1, 2010, the following income received by an individual shall not be added to the gross consolidated income, but withheld in accordance with the provisions of Article 88 at the rate of 10%:
1. The portion of the pecuniary amount realized by short-term commercial papers at their maturity in excess of the selling price at their initial issuance is deemed as income from interest.
2. The interest distributed from beneficiary securities or asset-backed securities issued in accordance with the Financial Asset Securitization Act and the Real Estate Securitization Act.
3. The interest derived from repo (RP/RS) trade whereby an individual purchases securities or short-term commercial papers as described in the preceding paragraph and Subparagraphs 2 and 3 in this paragraph shall be the net amount of the sale price at their maturity in excess of the original purchase price.
4. Income from transactions in structured products between individuals and securities firms or banks.
The provision regarding special deduction for savings and investment as provided for in Subparagraph 2-(3)-(iii), Paragraph 1 of Article 17 shall not apply to the interest as provided in the first paragraph and Subparagraphs 1 to 3 in the preceding paragraph.

(Deleted)

In case any individual person, profit-seeking enterprise, or organization or institution which is established for educational, cultural, public welfare or charitable purposes, is discovered to have improperly evaded or reduced the tax burden for himself/ herself/ itself or for other person(s) by means of transfer of funds or shareholder's equity, or any other false arrangement with any other domestic or foreign individual person, profit-seeking enterprise, or organization or institution which is established for educational, cultural, public welfare or charitable purposes, the tax collection authority for the purpose of computing the accurate amount of income and tax payable of the relevant taxpayers may, with the approval of the Ministry of Finance, make necessary adjustment according to the facts of actual transactions of investigation in accordance with the relevant laws.
The company, cooperative, or other juristic person who increase dividends or earnings distributed to shareholders, members, or investors through false arrangements or improper means that falsely increase the amount of tax credit set forth in Paragraph 4, Article 15, the tax collection authority may, based on the information acquired during investigation, make necessary adjustment in accordance with the amount of dividend or earnings payable to or received by such individual person.

Income or losses derived from transactions of house and land incurred by an individual provided in Article 4-4, where the house and land were originally acquired at a price, the amount of the income shall be the transaction price after deduction of the original cost and all expenses necessary for acquisition, improvement, and ownership transfer of that house and land; where the house and land were acquired through inheritance or gift, the amount of the income shall be the transaction price after deduction of the current value of the house and the assessed present value of land at time of inheritance or gift (which shall be duly adjusted with the price index announced by the government) and all expenses necessary for acquisition, improvement, and ownership transfer of that house and land. However, the land value increment tax paid in accordance with the Land Tax Act shall be excluded from the expenses, unless such tax paid is prorated to the part of the total amount of land value increment not being deducted from the amount of the income.
The amount of losses from transactions of house and land incurred by an individual is deductible from the income derived from transactions of house and land within three years from the day of transaction.
Income derived from transactions of house and land incurred by an individual calculated in accordance with the previous two Paragraphs, after deduction of the total amount of land value increment calculated in accordance with the assessed present value provided in Paragraph 1, Article 30 of the Land Tax Act shall not be added to the gross consolidated income. The tax payable shall be computed separately in accordance with the following tax rate:
1. An individual residing in the territory of the Republic of China:
(1) The transferred house and land that have been held for a period of no more than 2 years shall be taxed at 45%.
(2) The transferred house and land that have been held for a period of more than 2 years but no more than 5 years shall be taxed at 35%.
(3) The transferred house and land that have been held for a period of more than 5 years but no more than 10 years shall be taxed at 20%.
(4) The transferred house and land that have been held for a period of more than 10 years shall be taxed at 15%.
(5) House and land that have been held for a period of no more than 5 years and are transferred because of a job transfer, involuntary separation from employment, or any other involuntary cause announced by the Ministry of Finance, shall be taxed at 20%.
(6) An individual who sells house and land where the house is built in partnership with a business entity, and the share of land associated with the unit has been held for a period of no more than 5 years shall be taxed at 20%.
(7) House and the share of land associated with the house that are transferred for the first time after the completion of construction and have been held for a period of no more than 5 years, where the house and land are acquired through participation in urban renewal by providing land, legal buildings, other rights, or capital in accordance with the Urban Renewal Act or the participation in reconstruction in accordance with the Statute for Expediting Reconstruction of Urban Unsafe and Old Buildings shall be taxed at 20%.
(8) For income derived from transactions of self-use house and land conforming to the provisions of Subparagraph 1, Paragraph 1, Article 4-5, if the amount of income calculated in accordance with this paragraph exceeds NT$4 million, the income shall be taxed at 10% on the part of the income amount exceeding NT$4 million.
2. An individual not residing in the territory of the Republic of China:
(1) The transferred house and land that have been held for a period of no more than 2 years shall be taxed at 45%.
(2) The transferred house and land that have been held for a period of more than 2 years shall be taxed at 35%.
The holding periods stated in Subparagraph 1, Paragraph 1, Article 4-4 and Subparagraph 1, Paragraph 1, Article 4-5, where the house and land were acquired through inheritance or legacy, may be consolidated with the holding period of the decedent or the legator.

An individual who has income or losses derived from transactions of house and land provided in the preceding Article, regardless of the taxable amount, shall fill out and file to the tax collection authority-in-charge the tax return within 30 days from the day set in the following Subparagraphs, attached with a photocopy of the contract and other relevant documents; the payment receipt of the tax payable, if any, shall be attached:
1. The day following the day on which the ownership transfer registration of house and land is completed as provided in Paragraph 1 of Article 4-4.
2. The day following the transaction day of the right to use a house by creation of superficies, or the day following the transaction day of presale house with its building location provided in Paragraph 2 of Article 4-4.
3. The day following the transaction day of shares or capital provided in Paragraph 3 of Article 4-4.

When an individual fails to file the tax return specified in the preceding Article, or when, without due cause, the declared transaction price is lower than the prevailing market price, the tax collection authority-in-charge may assess the transaction price, based on the prevailing market price or data obtained through investigation. When an individual fails to present the documents of evidence of the original cost, the tax collection authority-in-charge may assess the cost, based on the data obtained through investigation; without the investigative information, the tax collection authority-in-charge may assess the cost, based on the assessed value of the house and the present value of land at the time of acquisition (which shall be duly adjusted with the price index announced by the government). When an individual fails to present the expenses necessary for acquisition, improvement, and ownership transfer of the house and land, the tax collection authority-in-charge may assess the expense, based on 3% of the transaction price, and such expense shall not exceed NT$300,000.

When an individual fails to file the tax return within the period as specified in the provisions of Article 14-5 , the tax collection authority-in-charge may assess the amount of income and tax payable and notify the individual of making a tax payment within the time limit.
For implementation of the investigation and verification by the tax collection authority-in-charge after receiving a tax return filed by an individual in accordance with Article 14-5, the provisions of Paragraph 1 of Article 80 shall govern.
For serving, checking and correction of the assessment notice showing the result of further investigation in accordance with the preceding Paragraph, the provisions of Article 81 shall govern.
An individual who has refundable tax payment through the investigation and verification in accordance with Paragraph 2, the provisions of Paragraph 2 and 4 of Article 100 shall govern.
For an individual who declares the deductions of various kinds of costs, expenses, and losses which exceed the limitations prescribed by Article 14-4 and the preceding Article, and thus the voluntary payment of tax falls short, the provisions of Article 100-2 shall govern.

For the amount of tax in accordance with the provision of Article 14-5 paid by an individual on the income realized from sales of house and land of a self-use residence, if he(or she) repurchases another house and land as his(or her) self-use residence within two years from the date on which the ownership transfer registration of house and land is completed or the transaction day of the right to use a house by creation of superficies, may apply to be refunded from the tax payable by the ratio of the repurchase price in the original sales price.
An individual who purchases house and land for his self-use residence within two years from the date on which the ownership transfer registration of house and land is completed or the transaction day of the right to use a house by creation of superficies, when he (or she) sells another self-use resident house and land and declares his (or her) tax in accordance with the provision of Article14-5, the amount of tax may apply to be deducted by the ratio provided in the preceding Paragraph with the limitation that it does not exceed the tax payable.
If the house and land repurchased as self-use residence provided in the preceding two Paragraphs was transferred or used for purposes other than the original purpose within five years from the day the transfer registration was completed for the reacquisition , the amount of deducted or refunded tax shall be paid back.

From January 1, 2014, where a taxpayer, his(her) spouse and/or a dependent whose support deduction may be made in accordance with Article 17 of this Act has any incomes as provided in Paragraph 1 of Article 14, except the separated taxpayer and his(her) spouse who are approved to file their tax returns and calculate the tax payable separately in accordance with this Act, the taxpayer shall file their tax returns and calculate the tax payable jointly. After the taxpayer has been identified, a change may be made within six months from the time limit prescribed for filling income tax returns for the taxable year.
About the calculation of the tax payables as provided in the preceding Paragraph, the taxpayer shall choose one of the ways in the following Subparagraphs:
1.To calculate the tax payable on any categories of income jointly: The amount of tax leviable on any categories of income as provided in Paragraph 1 of Article 14 of a taxpayer, his(her) spouse and dependents may be computed jointly. In computing the amount of such tax, the exemption and deductions may be deducted from the incomes in accordance with Article 17.
2.To calculate the tax payable on the salary income separately, and to calculate the tax payable on the remaining categories of income jointly:
(1) The amount of tax leviable on the salary income of a taxpayer or his(her) spouse may be computed separately. In computing the amount of such tax, only the tax exempt amount and the special deduction of income from salary and wage as specified in Article 17 may be deducted from the salary/wage income of the person whose salary/wage income is computed separately.
(2) The amount of tax leviable on the remaining categories of income of a taxpayer, his(her) spouse and dependents, except the salary income as provided in the preceding Item, may be computed jointly. In computing the amount of such tax, the exemption and deductions, except as provided in the preceding Item, may be made from the remaining incomes in accordance with Article 17.
3.To calculate the tax payable on any categories of income separately:
(1) The amount of tax leviable on any categories of income as provided in Paragraph 1 of Article 14 of a taxpayer or his(her) spouse may be computed separately. In computing the amount of such tax, only the tax exempt amount, the special deduction of property transaction losses, the special deduction of income from salary and wage, the special deduction of savings and investment, and the special deduction of disability as specified in Article 17 may be deducted from the income of the person whose incomes are computed separately.
(2) The amount of tax leviable on the income as provided in Paragraph 1 of Article 14 of the person whose income is not computed separately and dependents may be computed jointly. In computing the amount of such tax, the exemption and deductions, except as provided in the preceding Item, may be deducted from the incomes in accordance with Article 17.
(3) In computing the amount of the special deduction of savings and investment in accordance with the preceding two Items, not to exceed the amount as provided in Subparagraph 2-(3)-(iii), Paragraph 1 of Article 17, shall be first applicable to the income of the person and his(her) dependents whose income is not computed separately. The balance of unused deduction, if any, may therefore be applicable to the relevant income of the person whose income is computed separately as provided in Item 1.
The standard of identifying the separated taxpayer and his or her spouse as provided in Paragraph 1 and related documents of evidence shall be issued by the Ministry of Finance.
From January 1, 2018, where a taxpayer, his(her) spouse, and dependents whose support deduction may be made in accordance with Article 17 of this Act receive Business Income as provided in Category 1, Paragraph 1 of Article 14, the gross amount of tax payable, computed in the annual consolidated income tax return for the current year in accordance with Paragraph 2, may be offset from the amount of tax credit, based on 8.5% of the total amount of the dividends and earnings distributed by a company, a cooperative, or other juristic person in the year 1998 or each ensuing year thereafter, with the credit ceiling set at NT$80,000 per year per income tax return.
The taxpayer will be able to opt to calculate the tax payable separately in accordance with the single tax rate of 28% on the total amount of the dividends and earnings in the tax return in the preceding Paragraph, and such tax payable shall be included in the consolidated income tax return filed by the taxpayer and excluded from the application of Paragraph 2 regarding tax calculation method and from the preceding Paragraph regarding tax credit.

In the computation of an individual's gross consolidated income in accordance with the preceding two Articles, if a taxpayer and his spouse operate two or more profit-seeking enterprises, any loss determined by the tax office may be deducted from his income from profit-seeking as determined by the tax office and the amount of income shall be the balance after such a deduction.
The deduction as provided in the preceding paragraph may be make only where the "blue return" as provided in Article 77 of this Act issued by all the profit-seeking enterprises operated; however this shall not apply where the consolidated income report is not filed by the taxpayer within the prescribed time limit.

The net consolidated income of an individual shall be the gross consolidated income as computed in accordance with Article 14 and the preceding two Articles less the following exemptions and deductions:
1. Exemption: Taxpayers may deduct a prescribed amount of exemption for themselves, their spouses, and dependents that meet any of the conditions below. Furthermore, the exemption amount for taxpayers and spouses that are at least seventy years old shall be increased by 50%:
(1) Lineal ascendant(s) of the taxpayer and his (her) spouse having attained sixty years of age, or being incapable of earning a livelihood and being supported by the taxpayer. If a lineal ascendant being supported by the taxpayer has attained seventy years of age, the exemption amount for said lineal ascendant shall be increased by 50%.
(2) Children of the taxpayer who are minors, or who, although having attained the age of majority, are being supported by the taxpayer by reason of their studying in school, or having physical or mental disability, or being incapable of earning a livelihood.
(3) Brothers and sisters of the taxpayer and his(her) spouse who are minors, or who, although having attained the age of majority, are being supported by the taxpayer by reason of their studying in school, or having physical or mental disability, or being incapable of earning a livelihood.
(4) Other relatives or family members of the taxpayer within the meaning of Subparagraph 4, Article 1114, or Paragraph 3, Article 1123, of the Civil Code who are minors, or who, although having attained the age of majority, are actually being supported by the taxpayer by reason of their studying in school, or having physical or mental disability, or being incapable of earning a livelihood.
2. Deductions: A taxpayer may select either the "Standard Deduction" or "Itemized Deductions" and may, in addition thereto, declare special deductions:
(1) Standard Deduction: NT$120,000 for a single taxpayer; with a deduction to double that of the amount for a single taxpayer for a taxpayer and his or her spouse.
(2)Itemized Deductions:
i. Contributions and donations: For the taxpayer, his (her) spouse and dependent(s), contributions and donations made to educational, cultural, public welfare or charitable organizations or associations in a total amount not in excess of 20% of the total amount of the gross consolidated income is deductible. However, there is no limit to the amount of donations or contributions made for the support of national defense or troop-cheering or contributions to the government.
ii. Insurance premiums: Premiums paid by or for the taxpayer, his (her) spouse or lineal dependent(s) on life insurance, labor insurance, national pension insurance and insurance for military personnel, public servants or teachers, with the deductible amount not exceed NT$ 24,000 for each person per year. However, there is no limit to the amount of the premium paid for national health insurance.
iii. Medical and childbirth expenses: Medical and childbirth expenses incurred by the taxpayer, his (her) spouse, or dependent(s) provided that payments so made are limited to that paid to public hospitals, the hospitals or clinics appointed under national health insurance, or those hospitals having complete and accurate accounting records as recognized by the Ministry of Finance. However, no deduction shall be made for the portion (of such expense) covered by an insurance payment.
iv. Losses from disaster: The portion of loss incurred by the taxpayer, his (her) spouse or dependent(s) from a disaster caused by force majeure. However, no deduction shall be made for the portion of loss for which insurance benefit or relief has been received.
v. Interest on a house mortgage: The interest payable on a loan from a financial institution by a taxpayer, his (her) spouse and dependent(s) for the purpose of a house for his (her) own use may be deducted from his (her) consolidated income, with the deductible amount not to exceed NT$ 300,000 per year per tax return. However, if a special deduction for savings and investment has been made in the same tax return, the amount of such special deduction shall be subtracted from the aforesaid interest of the house mortgage; the deduction for interest on the house mortgage in accordance with the above mentioned provisions is limited to one house only.
(3) Special Deductions:
i. Loss from property transactions: The amount of loss from property transactions incurred by a taxpayer, his (her) spouse and dependent(s) which is deductible in one year shall not exceed the declared amount of income derived from property transactions in the same year. However, if no income or no sufficient income derived from property transactions in the same year is available for deduction, the loss may be carried forward in the next three years. The provisions relating to computation of income derived from property transactions set forth in category 7, Paragraph 1, Article 14 of the Act shall apply mutatis mutandis to the computation of loss from property transactions.
ii. Special deduction of income from salaries/wages: For a taxpayer, his (her) spouse and dependent(s) having income from salaries/wages, the deductible amount not to exceed NT$200,000 per year may be deducted for each person.
iii. Special deduction for savings and investment: For a taxpayer, his (her) spouse and dependent(s) having interest derived from deposits in financial institutions, income from trust funds in the nature of savings, and dividends accrued on registered share certificates publicly issued and listed on the market by a company, the deductible amount should not exceed NT$270,000 per year per tax return. However, this limit of deduction does not apply to the interest accrued and exempt from income tax on postal pass-book savings under the provisions of the Post Remittances and Savings Act and the interest accrued on short-term commercial papers subject to separate taxation as stipulated in this Act.
iv. Special deduction for the disabled: If the taxpayer, his (her) spouse or dependent(s) has (have) a disability certificate(s) or identification or being a patient as defined in Subparagraph 4, Article 3 of The Mental Health Act, a deduction of NT$200,000 per year may be made for each person.
v. Special deduction for educational tuition: If any of the children of a taxpayer is studying in a college or university, a deduction of NT$ 25,000 per child per year may be made for his (her) educational tuition. However, the tuition of the Open University, vocational colleges, the first three years of five-year vocational colleges and students who have accepted government subsidies are excluded.
vi. Special deduction for pre-school children: Starting from 2024, for a taxpayer who has children under or equal to six years of age, the amount of deduction for the first pre-school child is NT$150,000 per year; the amount of deduction for a second child and more is NT$225,000 per child per year.
vii. Special deduction for long-term care: Starting from 2019, for a taxpayer, his (her) spouse, or dependent(s) who is a qualified person with physical or mental incapacity and need long-term care services prescribed by the Ministry of Health and Welfare, a deduction of NT$ 120,000 per year may be made for each person.
viii. Special deduction for rent for housing: Starting from 2024, rent for housing in the R.O.C. paid by a taxpayer his (her) spouse, and lineal dependent(s) and used as their own residence rather than for business or performing professional services, may be deducted from their consolidated income to the extent of NT$180,000 per year per tax return, not including government subsidy. However, no deduction shall be made for taxpayers, their spouses, or lineal dependent(s) who own a house in the R.O.C.
The provisions of the deductions set forth in Item 2, Subparagraph 2 of the preceding Paragraph of this Article shall not apply to a taxpayer who is subject to filing a final income tax return in accordance with Article 71 of this Act but fails to do so and is assessed by the tax collection authority as to his (her) tax liabilities.
The provisions regarding the special deduction for long-term care as provided for in Item 3-7, Subparagraph 2 of Paragraph 1 and the special deduction for rent for housing as provided for in Item 3-8 shall not apply to the taxpayer whose circumstances fall under any of following three conditions:
1. The taxpayer or his (her) spouse’s annual total net consolidated income after the amount of the special deductions for long-term care and rent for housing have been deducted is declared in accordance with Paragraph 2 of Article 15 of this Act such that the declared individual income tax rate is greater than or equal to 20%.
2. The taxpayer’s option for the single tax rate of 28% on the total amount of his (her) household dividends and earnings computed separately from their consolidated income is declared in accordance with Paragraph 5 of Article 15 of this Act.
3. The amount of basic income of the taxpayer calculated in accordance with Article 12 of the Income Basic Tax Act is greater than the amount of deduction described in Article 13 of the Income Basic Tax Act.

Where an individual subject to the filing of consolidated income tax return under Article 71-1 is deceased or departed from the Republic of China during a taxable year, the deductible amounts of tax exemption and standard deductions for him (her) shall be computed respectively in proportion to the ratio between the number of days before his (her) death or the number of days of his residing in the territory of the Republic of China in that year and the total number of days of the said taxable year.

The amount of consolidated income tax paid by a taxpayer on the income realized from sales of building of the self-use residence, if he repurchases another building as his self-use residence within two years from the date on which the registration of transfer of ownership of the old building was completed, and the cost of the new building exceeds the original sales price, may be deducted or refunded from the consolidated income tax payable or paid for the year in which the registration of transfer of ownership of repurchased building as self-use residence was completed. However, if the income realized from the property transaction had already been offset against the loss incurred from property transaction concluded previously in accordance with the stipulations of this Act, then the provisions hereof shall not apply.
The provisions of the preceding paragraph shall also be applicable to the taxpayer who buys first and sells later.

The provisions regarding special deduction for savings and investment as provided for in Subparagraph 2-(3)-(iii), Paragraph 1 of Article 17 of the Income Tax Act shall not apply to the dividends on the registered stocks publicly offered and listed by any company and acquired from January 1, 1999 and thereafter by a tax-payer and his/her spouse and any dependent supported by him/her as covered in a combined annual income tax return.

Where the taxpayer, his or her spouse, and dependents donated the non-cash property to the government, national defense, troop cheering, educational, cultural, public welfare, or charitable organizations or associations and claimed the deductible amount of donations in accordance with Subparagraph 2-(2)-(1), Paragraph 1, Article 17 of the Act, the calculation of the amount of donations, unless otherwise provided by law, shall be based on the acquisition cost. However, under any of following three conditions, the tax authority shall determine the amount of the donations in accordance with the approved standards set by the Ministry of Finance:
1.The taxpayer is unable to provide documents proving the acquisition costs of non-cash property;
2.The non-cash property donated is received by way of inheritance or gift;
3.The calculated value of the non-cash property donated is significantly different from the acquisition cost, due to change of depreciation, depletion, market conditions, or other factors.
The standards stated in the proviso of the preceding Paragraph are to be prescribed by the Ministry of Finance in the light of the actual trading activities in the market in the year of donations.
The taxpayer, his or her spouse, and dependents donated non-cash property prior to the implementation of the provisions as amended on 12 July 2016 of the R.O.C. and the cases of taxpayers consolidated income tax on which has not been levied or determined will be subject to the provision of the first Paragraph hereof.