Please pay attention to common errors in personal comprehensive income tax declaration!

In response to the impact of the U.S. "reciprocal tariff" policy on Taiwan's economy, the 2014 comprehensive income tax settlement and declaration period has been extended to May 1 to June 30, 2015. In order to avoid taxpayers from being penalized for tax evasion due to incorrect declarations, the Taipei National Taxation Bureau of the Ministry of Finance has compiled common tax declaration errors from the past and reminds the public to pay more attention. The explanations are as follows:

1. Errors in tax exemption declaration

(1) The tax-free amount per person is NT$97,000 (the same below). The tax-free amount for the taxpayer who is 70 years of age or older, his/her spouse, and his/her "direct relatives" (parents, grandparents, etc.) who are supported by the taxpayer will be increased by 50% to NT$145,500. If a sibling who is 70 years of age or older or other relatives or family members (uncles, uncles, etc.) who meet the requirements of the Civil Code are declared to be supported, since they are not direct relatives, the tax-free amount will still be NT$97,000 and cannot be calculated based on NT$145,500.

(2) Misreporting children who are 18 years of age or older and are capable of earning a living, such as not being in school, serving in the military, or unemployed during the tax year.

2. Incorrect income declaration

(1) When reporting, the information obtained by downloading the voucher or inquiring at the tax collection agency counter was accidentally deleted or changed (if in doubt, please contact the voucher issuing unit for confirmation first).

(2) Omitting to report rental income, interest income from personal loans, overseas income and income from sources in the Mainland (such as dividends, sales or conversion gains from investments in overseas or Mainland funds, bonds, stocks and other financial products through domestic financial institutions or trust companies) or income from unlisted or over-the-counter stock transactions.

3. Incorrect deduction reporting

1. Itemized Deductions for Donations

Misreporting of payments related to consideration, such as lighting of Guangming lamps, ceremonies, Tai Sui worship or payment of membership fees.

(II) Itemized deductions for insurance premiums

Mistakenly reporting insurance premiums for "non-direct" dependents; or reporting life insurance premiums other than National Health Insurance, where the proposer and the insured are not in the same reporting household.

3. Itemized deductions for medical and childbirth expenses

1. Report medical expenses of non-public hospitals or medical institutions contracted by the National Health Insurance or hospitals (clinics) whose accounting records are complete and correct as certified by the Ministry of Finance.

2. Report non-medical expenses such as cosmetic surgery, confinement expenses, nursing expenses, and meals during hospitalization.

3. Failure to deduct the insurance benefits received at the time of declaration.

(IV) Itemized deductions for housing loan interest

1. Report the interest expense of "repair loans" or "consumer loans".

2. The taxpayer, his/her spouse or dependent relatives have not completed household registration at the address during the tax year.

3. The property is rented out, used for business or for carrying out business during the tax year.

5. Special deduction for education tuition fees

Report the education and tuition expenses of children who are not taxpayers (such as the taxpayer himself, his spouse or dependent siblings).

4. Not completing the application process but thinking the application has been successful

(I) Failure to submit a declaration successfully due to failure to upload the declaration materials during online declaration

For those who file online through the mobile version or online version, the declaration system can generate a "tax estimation form". After confirming that the content is correct, please be sure to upload the declaration information and confirm that the tax declaration system displays the message "declaration completed" (mobile version) or "upload declaration successful" (online version) to complete the declaration. Download or print the receipt and keep it for 7 years for future reference.

(II) Received the tax calculation notice but did not complete the tax payment or reply confirmation

Taxpayers who meet the applicable conditions will receive the tax calculation notice and related documents and forms. After verifying the contents and confirming that they are correct, if they agree to use the contents of the notice as the comprehensive income tax declaration information for 2014, they should pay the tax or reply for confirmation before June 30 this year (2015) to complete the declaration. If you do not agree with the content, you can report it online.

The bureau reminds the public that when filing the 2014 comprehensive income tax settlement declaration, they should pay attention to filling out the declaration correctly in accordance with relevant laws and regulations. If any errors are found after filing the tax return, within the declaration period, those who file online only need to re-upload the correct information; those who file manually or in two-dimensional form must re-fill out a correct declaration form and submit (mail) it to the tax authority for correction. However, if the declaration deadline has passed, regardless of the original declaration method, a corrected declaration must be submitted in writing to the tax collection authority in the place of household registration.

(Contact person: Section Chief Su of the Inheritance Tax Group of the Institute; Tel: 2311-3711 ext. 1560)