Taiwan Today

The first round of tax refund applications filed by Taiwan’s five national tax administrations were approved by the Ministry of Finance July 16. Of the 5.37 million individuals who filed tax returns this year, around 1.67 million, about 30 percent, are expected to receive rebates totaling NT$45.4 billion (US$1.38 billion) by the end of July. This represents an increase of 29 and 25 percent respectively from the previous year. The average tax refund is expected to be over NT$27,000. Sheu Yu-jer, director-general of the MOF’s Taxation Agency, said both the number of taxpayers and value of rebates for the first round of applications reached a record high. The MOF said this was due to an increase in four tax deductions that applied to this year’s filings. These extended to special deductions for the mentally and physically disabled, standard deductions, special deductions for salary earners and tuition fee deductions. Sheu said amendments clearing the way for lifting deduction levels went into effect after being passed by the Legislative Yuan last December. As a result, the government issued refunds for taxes already withheld during the year. The measure is estimated to have cost the government NT$21.6 billion in tax revenues. The director-general said another reason is the record high 3-million tax returns lodged over the Internet. The MOF said 58 percent of this year’s taxpayers filed applications electronically, making them eligible for the first round of refunds. Those lodging returns at their local tax offices before May 10 were also included in this figure. According to government statistics, the MOF’s National Tax Administration of Northern Taiwan Province topped the country with more than 580,000 tax refund applications totaling NT$14.2 billion. With 400,000-plus applications totaling NT$12.3 billion, NTA Central Taiwan ranked No. 2. It was followed by NTA Southern Taiwan’s 320,000-plus applications totaling NT$8.5 billion, Taipei National Tax Administration with 230,000-plus applications totaling NT$7 billion, and Kaohsiung National Tax Administration’s 110,000-plus applications totaling NT$3.2 billion. (SFC-JSM)