Taipei:Taiwan's Cabinet, the Executive Yuan, has approved draft tax incentives aimed at enhancing the Taiwan Individual Savings Account (TISA) program.
According to Focus Taiwan, the TISA program, launched in July 2025, is designed to help individuals prepare for retirement through government-backed, long-term savings accounts. These accounts allow investments in carefully selected Taiwanese mutual funds with low management fees and no subscription fees, requiring regular monthly deposits starting from NT$1,000 (US$30.68).
The approved provisions allow taxpayers to deduct up to NT$24,000 annually per person from their gross consolidated income for contributions made to TISAs for themselves, their spouses, and their dependent minor children. Additionally, withdrawals by account holders aged 60 or older, or those who have maintained an account for at least 30 years, would be tax-exempt. Withdrawals under circumstances such as the account holder's death, serious illness, or other significant unforeseen events would also be exempt from taxes.
These incentives were developed collaboratively by the Financial Supervisory Commission (FSC) and the Ministry of Finance. The FSC anticipates the provisions will be passed by the Legislature next year and implemented in 2028.
Cabinet spokesperson Michelle Lee conveyed that Premier Cho Jung-tai highlighted the opening of over 270,000 TISA accounts since the program's inception. The government aspires for TISAs to serve as a "third pillar" in Taiwan's retirement framework, complementing labor insurance old-age benefits and employer-funded labor pensions.
