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Under the new Labor Pension system, workers who make additional voluntary contributions can have these contributions deducted from their total taxable income for income tax purposes

Tax declaration for personal income tax for Fiscal 2012 begins on May 1, 2013. The Bureau of Labor Insurance would like to remind workers enrolled in the new Labor Pension system that anyone who made voluntary additional Labor Pension contributions during Fiscal 2012 can have the value of those contributions deducted from their total taxable income for income tax purposes. Workers should check their Withholding and Non-withholding Tax Statement carefully to ensure that they do not pay more tax than they need to.

Following the implementation of the new Labor Pension system, the Ministry of Finance has added an extra field to the Withholding and Non-withholding Tax Statement for recording voluntary additional Labor Pension contributions, so that firms (tax withholders) can record the amount of voluntary additional contributions made by each worker. If a worker has made additional voluntary Labor Pension contributions in Fiscal 2012, then on receipt of their Withholding and Non-withholding Tax Statement, they should check it carefully to verify that the figures given on the Statement for voluntary additional contributions pursuant to the provisions of the Labor Pension Act and personal contributions deducted by the employer on the worker’s behalf are correct, and that all contributions made in that fiscal year have been deducted from the Total Amount Paid field. To ensure that their rights are protected, if a worker discovers any errors or failure to deduct contributions from the Total Amount Paid, they should ask their employer to contact the National Taxation Bureau or National Tax Administration office and ask that the necessary corrections be made.

According to Ministry of Finance directive Tai Tsai Shui Tzu #09404571910 (issued on September 30, 2005), pursuant to Paragraph 3, Article 14 of the Labor Pension Act, the maximum amount of voluntary additional pension contributions that may be deducted from total income for income tax purposes is 6% of the maximum Monthly Contribution Salary of NT$150,000, or in other words NT$108,000 (NT$150,000 × 6% × 12 months). Even if a worker has two or more employers, the maximum deduction for voluntary additional pension contributions is still NT$108,000.

PreviousStarting from January 1, 2013, National Pension premiums will be calculated according to a premium rate of 7.5%; the premium payment slips have already been sent out in late March NextPoints to note regarding Labor Pension salary reporting for persons aged 16 or over working full time as of the date of implementation of the raising of the minimum wage on April 1, 2013
Last Update:2013-04-19