The “Taiwan version of Individual Investment Savings Account” (TISA) has failed to break through the barriers for successive years. The Investment Trust and Investment Advisory Association will not let it go. Society, potential social, economic and financial problems, I hope the government can face the problems as soon as possible.
The Trust and Investment Advisory Association has been fighting for the Taiwanese version of TISA since 2018, but all failed. The main reason for the failure is “tax incentives”. A person can invest 24,000 yuan per year to enumerate the deduction limit. Therefore, it has been rejected by the Ministry of Finance year after year.
The reason why the Ministry of Finance vetoed TISA is that compared with other countries, Taiwan’s current preferential tax regulations have the effect of encouraging investment. First, it includes interest income from deposits in financial institutions. Each reporting household has a special deduction of 270,000 yuan for savings and investment; Stocks and mutual funds in listed cabinets (including emerging cabinets) are exempt from transaction income tax; third, dividend income is also tax-deductible, or 8.5% of the taxable tax can be deducted when it is incorporated into the total comprehensive income, with a maximum deduction of 80,000 for each declaration If the annual dividend income is less than 940,000 yuan, the tax deduction can be fully enjoyed; or if the dividend income is higher, you can choose to calculate the tax amount separately at the 28% tax rate and file the tax together.
The Ministry of Finance mentioned that “the current tax system already has many preferential treatment for personal investment income. If the personal investment TISA amount (investment cost) is further deducted from the personal income, it may cause repeated and excessive preferential treatment”, so it is not suitable to adopt.
The Ministry of Finance also believes that if according to the recommendation of the credit investment and consulting industry, the preferential deduction of the amount of personal investment in financial products will be provided, which will guide funds to purchase products issued by credit investment companies or banks. industry) to provide tax relief, which may lead to unfair tax treatment among industries, triggering other industries to require quoting and applying by reference, which is not conducive to the soundness of our country’s finances. Based on the principle of tax neutrality and the integrity of the tax system, it is not appropriate to provide tax reduction and exemption incentives for specific industries. The Financial Supervisory Commission, the competent authority of investment credit and banks, should develop other non-tax incentive measures.
In response to the Ministry of Finance’s refusal of the Taiwanese version of TISA’s suggestion, the Investment Trust and Advisory Association believes that the Ministry of Finance is the national tax policy authority and has its own considerations for tax incentives. In response to the social, economic and financial problems that may be hidden in Taiwan’s aging society, it is hoped that the government can face the problems as soon as possible. The association believes that this system can guide the people to prepare for their retirement life as early as possible.
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