《TAIPEI TIMES》More tax breaks for young families proposed

Minister of Finance Chuang Tsui-yun speaks at a meeting of the legislature’s Finance Committee in Taipei yesterday. Photo: Tu Chien-jung, Taipei Times

By Crystal Hsu / Staff reporter Taiwan plans to expand tax breaks for families with children and is reviewing the next phase of its flagship first-time homebuyer mortgage program as the government steps up efforts to address demographic decline and housing affordability concerns.

Minister of Finance Chuang Tsui-yun （莊翠雲） told the legislature’s Finance Committee yesterday that the ministry has submitted amendments to the Income Tax Act （所得稅法） to the Executive Yuan. The proposal would raise the personal income tax exemption for each dependent child under the age of 18 by 50 percent, increasing it from NT$101,000 （US$3,199.85） to NT$151,500, pending legislative approval.

If passed this session, the changes would take effect for the 2026 tax year, allowing taxpayers to claim the higher deduction when filing returns next year, Chuang said.

Taiwan has one of the world’s lowest birth rates, prompting policymakers to roll out a range of measures aimed at reducing the financial burden of raising children and encouraging family formation.

Lawmakers have introduced 28 separate bills related to child tax deductions, with some arguing the government’s proposal does not go far enough.

Chuang said tax relief is only one part of a broader strategy to address declining birth rates. The government provides direct subsidies for childcare and child-raising, including support for families with children aged zero to two, childcare allowances for those aged two to six, and a newly introduced NT$5,000 monthly growth allowance per child.

“The government is providing support through both tax measures and direct subsidies,” Chuang said, adding that a coordinated approach across ministries is needed to build a comprehensive family support system.

Separately, Chuang said the ministry is preparing a revised version of the government-initiated housing loan program for first-time homebuyers, with a full proposal expected by the end of this month.

The current program is scheduled to expire at the end of next month. Authorities are collecting feedback from stakeholders and reviewing possible adjustments before unveiling the next version.

Reports have said the revised program could raise the maximum loan amount and introduce income eligibility requirements. Under discussion are proposals to increase the loan ceiling to NT$15 million while setting an annual household income cap of NT$2 million. Lawmakers have questioned whether such changes would align with banks’ lending standards.

Chuang said the current program allows loans of up to NT$10 million, with financing of up to 80 percent of a property’s value. She added that suggestions raised during the program’s implementation are being reviewed.

The minister said that the program’s primary objective is to help households without homes purchase owner-occupied housing, and any revisions would be designed to ensure public resources are directed toward that goal.

新聞來源：TAIPEI TIMES