Workers who had personal voluntary pension contributions in 2019 should check and reconfirm the contributions have been deducted in full from the declared salary income of the salary withholding certificate
Citizens will be expected to report their 2019 income tax starting in May 2020. When filing tax returns, all workers who had personal voluntary pension contributions in 2019 should check and reconfirm that the voluntary pension contribution has been deducted in full from the declared salary income of the salary withholding certificate.
The Bureau of Labor Insurance (BLI) indicated that, in accordance with Article 14 of the Labor Pension Act, workers may voluntarily contribute up to 6% of their monthly wage to the labor pension, which will not be included in the income tax withheld from their annual salary. For example: The total monthly wage of a worker was NT$55,000, and the total income from salary for the year 2019 was NT$770,000 (including a year-end bonus). If the worker voluntarily contributed NT$39,888 (the contribution level of NT$55,400 x 6% x 12 months) to the labor pension, the total amount paid to be reported in the 2019 salary withholding certificate issued by the worker's company would be NT$730,112 (NT$770,000 - NT$39,888).
The BLI further pointed out that the voluntary pension contribution deducted from the declared salary income for the year shall not exceed 6% of the monthly contribution of NT$150,000. In other words, the amount deducted from the declared salary income for the year is capped at NT$108,000 (NT$150,000 x 6% x 12 months). If the worker is employed by two or more employers, the amount deducted is still capped at NT$108,000.
The BLI also reminded all workers that if the deduction of personal voluntary pension contributions was not made from the declared salary income or was incorrect, workers should inform the business entity to apply for a correction at the local branches or offices of the National Taxation Bureau as soon as possible, thereby avoiding overpayment of taxes.