Presidential Office: Tax reform geared for investment, development

Taipei, Sept. 3 (CNA) The Presidential Office has said that the latest tax reform program set forth by the Ministry of Finance (MOF) will strengthen investment, and promote industrial development and competition.

Presidential Office spokesman Sidney Lin said recently that the reforms will revolve around three main principles: To ease the income tax burden on salaried people and middle and low-income earners; to ease the tax burden on small and medium-sized enterprises and start-up companies; and to establish a competitive tax system in line with international trends.

With proper implementation, the reforms will achieve a fairer tax system, promote economic efficiency and simplification of the tax code, and create revenue, he said.

In all, the changes will create an excellent environment for investors and taxpayers, according to Lin.

Lin said the government is determined to go ahead with the reforms.

According to the MOF, the new bill proposes an increase in the deduction threshold for comprehensive income tax from NT$90,000 (US$2,986) to NT$110,000, and the thresholds for both salary tax and disability tax from NT$128,000 to NT$180,000.

Cabinet spokesman Hsu Kuo-yung said that tax reforms are one of the major policies of the government, as tax plays a major role in promoting investment, reducing the wealth gap and improving the general livelihood of tax payers.

In addition, the new bill will cut the highest bracket of cumulative income tax from 45 percent to 40 percent.