Taiwan: 28 High-Income Households Paid Zero Tax in 2024

In Taiwan, a notable number of high-income households are legally avoiding income tax. According to 2024 income tax filings, 28 households with annual incomes exceeding NT$5 million (approximately US$152,000) paid no income tax. This is part of a larger trend where 634 households earning over NT$2 million (approximately US$60,000) also reported zero tax liability.

Officials attribute this phenomenon primarily to increases in tax exemptions and various deductions. Notably, medical expenses and donations to government agencies are fully deductible, with no upper limit. This allows high-income earners to significantly reduce their taxable net income to zero, even with substantial gross earnings.

Compared to the previous year, the number of households earning over NT$2 million who paid no tax has risen from 335 in 2023 to 634 in 2024. The government acknowledges this situation and states that it is continuously monitoring and reviewing the issue of high earners paying no tax to prevent tax inequity.

While these high-income individuals are utilizing legal means to reduce their tax burden, the situation raises questions about fairness in the tax system. Tax authorities emphasize their ongoing efforts to scrutinize these cases and explore potential adjustments to tax policies.

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Officials emphasized that they pay attention to relevant situations every year and conduct regular checks, and are continuously reviewing the issue of high incomes not paying taxes to avoid tax inequity.