Taiwan's Draft Tax Reform includes Abolishing Imputation Tax System and Increasing Corporate Tax Rate and Dividend Withholding Tax Rate

On 1 September 2017, Taiwan's Ministry of Finance issued a release on draft tax reform amendments to the Income Tax law. Planned changes are divided into three main areas and include:

• Reducing the tax burden on salary income and low-income taxpayers by:
  • Increasing the standard deduction from TWD 90,000 to TWD 110,000;
  • Increasing the special deductions for salaries and for the disabled or handicapped from TWD 128,000 to TWD 180,000; and
  • Removing the top 45% income tax bracket (top rate will …