Tax reduction Red Packet-Long-term care leads to deduction of 120,000 yuan per person

        　　By the end of May this year, Taiwan's elderly population has accounted for 15% of the total population. According to Ministry of Health and Welfare statistics, nearly 800,000 people in Taiwan now have long-term care needs. Long-term care is a long way to go. In order to lighten the burden on families, the government once again offered tax reductions. Starting next year, it is estimated that 290,000 people will enjoy a special deduction of 120,000 yuan for long-term care.

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        As Taiwan has entered an aging society, the government has actively promoted the long-term care policy 2.0. The Executive Yuan proposed a draft amendment to the tax law in early April this year. The Legislative Yuan formally passed the third reading on July 1. The special deduction for long-term care (hereinafter referred to as the "long-term care deduction") can be deducted by 120,000 yuan per person per year. Up to January 2019, the public will be able to declare in May next year. It is estimated that 290,000 people will benefit and tax losses will be about 2 billion yuan.
        
         According to the taxation data of the Ministry of Finance in 2017, of the 6.31 million taxpayers in the Taiwanese Stock Exchange, 2.74 million are taxed at 5% and 780,000 are taxed at 12%, accounting for 50% of the total taxpayers. Ministry of Health and Welfare estimates that households with 5% and 12% tax rates have a disability population of 290,000.
        
         If there are two "disabled persons" identified by Ministry of Health and Welfare, people with 5% tax rate will save 12,000 yuan tax burden next year, and people with 12% tax rate will save 28,800 yuan tax burden. However, only 290,000 of the nearly 800,000 people enjoy this tax reform preference. For taxpayers whose annual income is less than 408,000 yuan and whose income is below the tax threshold of the Comprehensive Institute, this policy can not alleviate their burden. The long-term care related supporting measures still need efforts from all walks of life.

        Long-term care deduction is applicable to VS. Not applicable
         I. Applicable objects:
         1. Persons who have been diagnosed as psychosomatic disability and long-term care needs and who are qualified to employ family caregivers in accordance with the relevant provisions of the Employment Services Law (both domestic and foreign caregivers are applicable)
         2. Entrusting professional long-term care institutions
         3. Self-care at home
        
         If the long-term care object has both physical and mental disability certificates, the special deduction of physical and mental disability in the special deduction amount is 200,000 yuan, and the long-term care deduction amount is 120,000 yuan, which can be combined to calculate the annual deduction amount of 320,000 yuan.

        2. Not applicable objects:
         The long-term care deduction is not applicable to preschool children as compared with preschool deduction.
         1. After special deduction for preschool children and special deduction for long-term care, taxpayers or their spouses shall apply a tax rate of 20% (including) or more.
         2. Taxpayers choose their declared dividends and earnings to be calculated separately at the 28% tax rate.
         3. Taxpayers whose basic income (according to the data of the State Tax Administration in 2017, the minimum tax burden is 6.7 million yuan) exceeds the specified deduction amount are not applicable.(Sources: Legislative Yuan, Ministry of Finance, Ministry of Health and Welfare, Ministry of the Interior)

        [Knowledge Primary School]
         Net aggregate personal income = total personal income - tax exemption - deduction
         (Special deductions may be deducted after standard deductions or enumerated deductions are deducted alternatively)
        
         _Tax exemption:Taxpayers shall deduct the tax exemption for themselves, their spouses and their dependants in accordance with the following provisions; taxpayers and their spouses who are over 70 years of age shall increase the tax exemption by 50%.
        
         _Deductions:
        

        Notes
         1. Long-term care (full name "long-term care"): refers to the life support, assistance, social participation, care and related medical and nursing services provided by persons whose physical and mental disabilities persist or are expected to last for more than six months, depending on their personal or caregiver needs.
         2. Disabled person (full name is "physical and mental disability"): refers to the partial or total loss of physical or mental function, resulting in their daily life needs the assistance of others, need to obtain a specific medical institution Ebba scale diagnosis of physical and mental disability.