Tax Deductable


#1

I’ve heard that you can get a tax deduction on money you may send home to support your parents, is this true? If so anyone know what the conditions are, how to prove you’ve sent the money etc.? Could I simply transfer money home and then use my 'foreign’ATM card to simply withdraw it again here, and thus gain a nice tax deduction??


#2

This is another queston following the question below

Suppose you are earning money every month, and also renting an apartment. Are you entitled to tax back if you produce the rental agreement when filing tax.

Lets say I am renting a place for $30,000 and I am declaring in my tax return I am getting 31,000 a month. Am I entitled to a tax reduction cause my rent is so high compared to my income.

Can foreigners do this or is it one of those things for Taiwanese citizens. I read somewhere before that you need some other proof about this. I also read that landlords can be against this when dealing with foreigners, cause a Taiwanese has got a household registration and the foreigner can only flash the ARC and therefore can’t have a ‘residence’

Will a rental agreement or rent book or receipts do to show the tax office, or is something else required?

Does anybody know any other tax ways of getting more money out of the tax office in Taiwan? : )

My girlfriend lives with me(she is an ROC citizen), would it be easier for the future for her to put the contract in her name and for her to declare some of her income, and get some money back or does it only work for where the address on her ID Card says she is registered?


#3

If you want a tax rebate on your rent payments you have to first check that your landlord is actually paying tax on the rent he receives, ie the apartment is legit. If you look for an apartment through a real estate agent, you’ll usually see two rent amounts shown, a higher one if your company is paying the rent, as the landlord charges the tax he will pay (about 10%) on top of the normal rent, as the company will obviously be claiming a tax deduction for the place they’re renting for an employee.
i tried to get the tax deduction last year, but my landlord wasn’t too impressed. Apparently they need to declare this income before the tax year, or at some point during the year, as he said he couldn’t simply declare it at the year end, or perhaps he’d already filled in his returns (mine were running a little late!) Anyway it can be a good bargaining point with your landlord, he obviously doesn’t want you going to the tax office claiming a reduction that he has declared income for, I managed a 10% rent reduction for my efforts!


#4

Back to the first question - I know it was possible to claim parents and other dependants on tax returns. I did this between 94-97. You needed bank receipts showing the transfer - a couple per year was ok. Also the tax break has 2 levels - one for above 65 and a better break for parents above 70 or 75. For the higher break you need to provide proof that the parent is still alive - I used a copy of a letter notifying of a medical appointment.

The system was fairly open to abuse - so I am not sure if it has been tightened up over the last few years.


#5

Back to the first question - I know it was possible to claim parents and other dependants on tax returns. I did this between 94-97. You needed bank receipts showing the transfer - a couple per year was ok. Also the tax break has 2 levels - one for above 65 and a better break for parents above 70 or 75. For the higher break you need to provide proof that the parent is still alive - I used a copy of a letter notifying of a medical appointment.

The system was fairly open to abuse - so I am not sure if it has been tightened up over the last few years.


#6

With regards to the first question, the tax law allows individual’s who’s parents are over the age of sixty to be claimed as dependants, and to be allowed a deduction from income (somewhere in the range of NT$60,000 per parent). You will need to provide proof that the parent is alive and of his/her relationship to you. No bank remittance/wire slips are required. Also, you may not take a deduction beyond that provided above, even if you are wiring more money home to your parents.

With regards to the second question, you can deduct up to a certain amount of your rent as prescribed by law from your taxable income. You will need to provide a copy of the lease agreement with your landlord and evidence of payment (usually the ATM transfer receipt). The landlord is required to registered with the government if he/she is renting a place out and to pay tax on the rental income. However, since most landlord does neither of the above, he/she will ask you prior to leasing a place to you whether you intend to claim a deduction. Usually, the rental price will be increased/decreased accordingly depending on whether you intend to or not. However, even if you agree with your landlord not to file a deduction, which in most cases will be orally, you can still do it and get a deduction (but make sure that you are no longer living there if you decide to break your word to the landlord).


#7

I heard they change the tax year starting from this year. When do we need to go to the Tax Office for our income last year?

What kinds of documents needed in order to be eligible for tax deduction for parents over 60 years old? Do they need to be certified by the TECO? What if the parents don’t have a birth certificate? Will ID card/Diploma be acceptable?

Thanks a lot!