Taiwan President Lai signs tax cuts for families, boosting child exemptions and insurance deductions

President William Lai signed amendments to Taiwan’s Income Tax Act that raise the personal exemption for dependent minors by 50 percent, from NT$101,000 to NT$151,500, and permit full deduction of premiums for social-insurance schemes such as Labor Insurance and National Pension Insurance, eliminating the previous NT$24,000 cap. The Ministry of Finance projects the reforms will benefit about 2.37 million families and provide roughly NT$8 billion in tax relief, aligning with the Executive Yuan’s new population strategy aimed at easing the nation’s declining birthrate.

The changes are retroactive to Jan. 1 and will be reflected in the tax returns filed in May of the following year. Meanwhile, two F-16V Block 70 jets Taiwan bought from the United States were observed turning back after departing from Hawaii, raising questions about delivery schedules for the fleet slated for Chihhang Air Base in Taitung County. Security scholar Oriana Skylar Mastro highlighted Taiwan’s growing defence spending and asymmetric capabilities, while a separate analyst warned that higher early-exit compensation for air-force officers could spur pilot attrition. Researcher Chieh Chung noted a planned increase in volunteer military personnel to 158,223 next year, and the Mainland Affairs Council warned that upgrades to Chinese long-range rocket-artillery could extend its reach across the Miyako Strait.