Answer:

The individual income tax for a resident of the R.O.C. shall be computed by a progressive rate on his/her net consolidated income which shall be the annual gross consolidated income minus the exemptions, deductions, and basic living expense difference. The exemptions, deductions, and basic living expense difference for the fiscal year of 2024 are stated as follows:

1. Exemptions: There is an NT$97,000 exemption for each person (including taxpayer, his/her spouse, and dependents) in the filing of income tax return of 2024. If the taxpayer, his/her spouse, and their lineal ascendants have attained 70 years of age, the exemption is NT$145,500 in the filing of income tax return of 2024.

2. Deductions: A resident of the R.O.C. can claim either the standard deduction or itemized deductions and special deductions.

(1) Standard deduction:

There is an NT$131,000 deduction for a single person in the filing of income tax returns and an NT$262,000 deduction for a married couple filing a joint return.

(2) Itemized deductions (original receipts or documents should be attached according to tax law) including the following 5 items:

1. Donation: This deduction shall not exceed 20% of the taxpayer’s consolidated gross income. However, donations made to national defense, military, or to the government are fully deductible.
2. Personal insurance premiums: Premiums paid for life insurance, labor insurance, employment insurance, national pension and insurance for military personnel, public functionaries and teachers, by the taxpayer, his/her spouse, and their lineal dependents are deductible. However, the deductions, excluding those for national health insurance, shall not exceed NT$24,000 for each person per year; premiums paid for national health insurance are fully deductible.
3. Medical and maternity expenses: Deductions can be claimed following related laws or regulations.
4. Losses from disaster: Deductions can be claimed following stipulated laws or regulations.
5. Interest paid on a loan for an owner-occupied residence: Under the conditions that the residential house entitled for the deduction is to be located within the territory of the R.O.C., and that the deduction shall not exceed NT$300,000 for only one house each year. However, in the case that the taxpayer also claims his/her interests as a special deduction for savings and investment, such special deduction shall be subtracted from the above-mentioned interests.

(3) Special deductions:

1. Losses from property transactions: Deductions shall not exceed the gains from property transaction filed for the same year.
2. Special deductions for savings and investment: Deductions for each household shall not exceed NT$270,000 per year.
3. Special deduction for disability: Deductions for each disabled person (R.O.C. authority registration required) is NT$218,000 in filing the tax return.
4. Special deduction for tuition: For each annual return, the maximum deduction for tuition fee is NT$25,000 for each child attending college or university.
5. Special deduction for pre-school children: For a taxpayer who has children under or equal to 6 years of age, the amount of  deduction for the first pre-school children is NT$150,000 per year; the amount of deduction for a second child and more is NT$225,000 per child per year.
6. Special deduction for long-term care: The taxpayer, his or her spouse, or any dependent who has a physical or mental disability and requires long-term care services as announced by the Ministry of Health and Welfare, must submit the relevant documents to claim the special deduction of NT$120,000 per person per year if his/her circumstances do not fall under any of the conditions referred to in the Notes. 
7. Special Deduction for Rent for Housing: Rent for housing in the R.O.C. paid by a taxpayer, his or her spouse, and lineal dependents and used as their own residence rather than for business or performing professional services, may be deducted from their consolidated income up to a limit of NT$180,000 (not including government subsidy) per year per tax return if his/her circumstances do not fall under any of the conditions referred to in the Notes.

Notes:

1. After deducting the long-term care and rent for housing deduction, the taxpayer’s tax rate is equal to or greater than 20% or the tax rate of the taxpayer’s or his/her spouse’s separately computed employment or categorized income is equal to or greater than 20%, or the taxpayer has opted for the single tax rate of 28% on the total amount of the dividends and earnings computed separately.
2. The amount of the basic income of the taxpayer is greater than NT$7,500,000.

(4) Basic Living Expense Difference: The total basic living expense shall be calculated in accordance with the expense of basic living for each person, NT$210,000 announced by the central authority in 2024, multiplied by the number of taxpayer, spouse, and dependents in one tax return. If the amount of basic living expense is higher than the sum of exemptions, standard deduction (or itemized deductions), and special deduction for savings and investment, special deduction for disability, special deduction for tuition, special deduction for pre-school children, special deduction for long-term care, and special deduction for rent for housing, the difference can be used as an additional deduction from the gross consolidated income.

In the case that a resident of the R.O.C. departed and did not return during a taxable year, the amounts for exemptions, standard deduction, and basic living expense shall be calculated in proportion to the length of stay in the R.O.C. during that year.

Table of progressive tax rates for the year of 2024 (Unit: NT$)