Taiwan Immigrants’ Global News Network-Attention renters! New rental tax deduction policy launched-deduct up to NT$180,000

With the comprehensive income tax filing season in May approaching, the National Land Administration under the Ministry of the Interior reminds the public that the new rental tax deduction system has officially taken effect. Starting this (114th) year, rental expenses are reclassified from itemized deductions to special deductions, and the maximum deductible amount has increased from NT$120,000 to NT$180,000. Tenants are reminded to declare their rental expenses when filing taxes to legally reduce their tax burden.

Additionally, individuals participating in the social housing sublease and management program or receiving rent subsidies under the NT$30 billion housing support plan are eligible for both rental assistance and tax deductions. When filing income tax in May, taxpayers may declare the actual rent paid (after deducting the government subsidy) under the special rental deduction.

The National Land Administration stated that since the end of 2017, the social housing sublease and management policy has been implemented through cooperation with rental service providers, helping match landlords and tenants while ensuring legal leasing relationships and housing quality. As of the end of March, there are over 88,000 active rental contracts under this program. Tenants may apply for rent subsidies and receive various housing support, including maintenance. This year, they can also benefit from the new rental tax deduction policy.

Furthermore, landlords are entitled to an income tax exemption of up to NT$15,000 per month per property, along with preferential tax treatment for house tax, land value tax, and income tax. These policies aim to jointly foster a friendly rental environment between landlords and tenants.

The National Land Administration emphasized that the rental tax deduction system is officially in effect this year. According to standard residential lease contract clauses (Article 3 and Article 5), landlords may not prohibit tenants from declaring rental expenses nor shift tax liabilities meant for landlords to tenants.

If a landlord violates these rules, the tenant may declare the clause invalid and file a complaint with the local consumer protection agency or land administration office. If the issue is not resolved by the deadline, the landlord may be fined up to NT$500,000 and penalized repeatedly.

For any inquiries regarding the special rental deduction in income tax filing, please contact your local National Taxation Bureau or call the toll-free hotline 0800-000321.

Source: Ministry of the Interior