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Q16:What is the special deduction for savings and investment in individual income tax? And how much is the limitation?

Answer:

The following kinds of income are included in the Special Deduction for Savings and Investment:

  1. Interest derived from deposits made in financial institutions and profits derived from trust funds of a similar nature to savings accounts.
  2. Dividends occurred from the transaction, gift, inheritance, waive deferment, deposit TSCD, and others of tax-deferred stocks divided before December 31, 1998.

The above kinds of income received by the taxpayer, his/her spouse, and dependents listed in his/her individual income tax return are exempted from income tax if the total amount does not exceed NT$270,000. 

Last updated:2025-04-11