Donations made by individuals with the right to vote to political parties, political groups, and candidates for election may be itemized as deductions for the current year when filing income tax returns in accordance with the Political Donations Act. The total amount that can be deducted by each filing household may not exceed 20% of the total comprehensive income reported for the current year, and the total amount may not exceed NT$200,000 (hereinafter the same), and shall not be included in the total amount of donations to educational, cultural, public welfare, or charitable institutions or groups as provided in Article 17 of the Income Tax Act.
The Kaohsiung National Taxation Bureau of the Ministry of Finance explained that according to Article 19 of the Political Contribution Act, political donations made by individuals to political parties, political groups, and candidates for election are not subject to the itemized deduction provisions for donations if any of the following circumstances apply:
1. Failure to obtain a gift receipt or the receipt does not conform to the format.
2. The identity of the donor does not meet the requirements, for example, the donor is a candidate for the same election.
3. Donations that seek or promise improper benefits.
4. The period of receiving political donations is not in compliance with regulations.
5. The donor donates under a name other than his/her own or the donation is anonymous and exceeds NT$10,000.
6. The total amount of donations each year exceeds the limit.
7. Return or surrender of political donations received in violation of regulations.
8. Donations to those who have not been registered as candidates in accordance with the law or whose candidacy has been revoked after registration (this does not apply to those who die after receiving donations).
9. Donations to political parties: The legislative candidate recommended by the political party did not receive 1% of the votes in the most recent election.
The bureau reminds that since the period during which a candidate receives political donations may span different years (for example, the period during which the candidate for the 16th president and vice president received political donations was from May 20, 2013 to January 12, 2014), if the public donates to the candidate in different years, they should itemize the deductions in the comprehensive income tax return for the year to which the donations belong. If you have any questions about the applicability of relevant laws, you can call the toll-free service number 0800-000-321 for inquiries, or go to the bureau’s website (https://www.ntbk.gov.tw) and use the National Tax Bureau’s smart customer service "National Tax Assistant" to inquire online.
Provider: Inheritance Tax Group of the Institute of General Law Contact Person: Liang Yuanzhang Contact Number: (07) 7256600 ext. 7210
Written by: Wang Rouchun Contact number: (07) 7256600 ext. 7217
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