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Tax Brackets for Personal Income Likely to Be Adjusted
2007/11/12
Taipei, Nov. 12, 2007 (CENS)--With accumulated price hike having topped 10%, tax brackets for consolidated income tax is likely to be raised by the same rate when local tax payers file income tax returns in May 2009 for their 2008 income.
The Ministry of Finance (MOF) reported that the consumer price index of the base period for 2008 tax returns, from November 2006 to October 2007, averaged 105.23, 10.02% higher than average 95.65 consumer price index of the base period for 1997 tax returns, triggering automatic adjustment in tax brackets under the current mechanism.
As a result, coverage of the lowest 6% tax bracket will be raised to under NT$410,000, from NT$370,000 now and that of the highest 40% bracket to over NT$4.09 million, from NT$3.72 million.
The MOF pointed out that medium-to-low-income people will benefit more from tax-bracket adjustment than high-income people. Tax rate for taxable income ranging NT$370,000-410,000, for instance, will drop from 13% to 6%, for a scale of 50%, while the rate for taxable income ranging NT$3.72-4.09 million will decline from 40% to 30%, for a scale of 25%.
Meanwhile, the amounts of exemption and deduction for personal taxable income, as well as the amount of taxable-income exemption for gift tax and inheritance tax, for 2008 will remain unchanged, as the accumulated CIP increase has not reached 3% for the former and 10% for the latter since the year when the amounts were adjusted last time.
(by Philip Liu)
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