Taiwan Cabinet greenlights tax breaks for individual retirement savings accounts
Taiwan's Executive Yuan approved draft tax deductions for contributions to the Taiwan Individual Savings Account program, aiming to boost retirement savings.
On Thursday, Taiwan's Executive Yuan approved a draft set of tax incentives for the Taiwan Individual Savings Account (TISA) scheme, a government-backed retirement vehicle launched in July 2025. Under the plan, individuals can deduct up to NT$24,000 per year from their gross income for contributions made for themselves, their spouses and minor dependents. The draft also provides tax-exempt status for withdrawals made after the account holder reaches age 60, after a 30-year holding period, or in cases of death, serious illness or other major unforeseen events.
The Financial Supervisory Commission and the Ministry of Finance jointly prepared the proposal, which they hope the Legislature will pass next year and that will take effect in 2028. Cabinet spokesperson Michelle Lee reported that Premier Cho Jung-tai said over 270,000 TISA accounts have been opened, and the government envisions the accounts becoming a third pillar of Taiwan's retirement system alongside labor insurance and employer-funded pensions.
Why it matters
The tax incentives aim to encourage long-term saving, strengthening Taiwan's retirement security and reducing future pension burdens.
How the sides frame it
HIGH AGREEMENTBoth camps report the Executive Yuan's approval of tax incentives for the TISA scheme with largely identical facts, showing no substantive difference.
LEFT
Presents the approval as a positive step, highlighting the scheme's existing asset growth and detailed benefit provisions.
CENTER
Describes the approval as a government-backed initiative, noting the joint preparation by agencies and the expectation of legislative passage.
The left emphasises
- Since its launch, TISA assets have topped NT$21.64 billion
- allows annual deduction of up to NT$24,000 per person
- tax-exempt withdrawals after age 60 or 30-year holding
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