Taiwan tax: deduction for parents over 60

#1

[color=blue]Anyone out there used a notarised statement in place of a bank transfer slip to claim a deduction for a parent over 60?[/color]

Last year, I successfully claimed a deduction for my father (aged over 60), using: 1) a copy of his birth certificate; 2) a copy of my birth certificate; 3) a receipt showing I’d transferred money to his account.

According to the tax office, I only need something to show he’s still alive after he’s over 70. I didn’t have all the bits of paper when I filed last year, but the tax office gave me the deduction and asked me to provide them with the remaining bits of paper later. This year they processed my claim without giving me the deduction; they want to see all the evidence first.

This year, I have no bank transfer receipt, but the tax office told me that instead, I can use a notarised declaration that I am providing support for my father (and this year my mother who turned 60 last year).

Parents tax deduction
#2

I was told yesterday that I can provide the tax office with either a statement from one of my dad’s insurance policies for 2004 or a notarized statement stating his date of birth, address, and that I’m his son.
This information was provided by the Xindian tax office. I haven’t actually done it yet so I don’t know if the information is correct.

#3

This being Taiwan, I think the answer is ‘it depends’.
Last year, I claimed for both my parents - without any evidence at all. Done the same this year.

#4

How did it work out?

Anyone else have tales of evidence needed – or not needed, as the case may be?

#5

I’ve successfully claimed parents as dependents over the last few years in Xindian. The first year I was asked to show proof that money was transferred, countered with ‘would you ask a Taiwanese person for proof?’ and got the usual, ‘No, but…’, but nothing, if you are taxed under the same scheme and rules as locals, then you shouldn’t need to show proof. I get away with it in Xindian, I’ve heard Taipei is a little more strict. Ask them to show you clearly where the written rule is that says you must provide proof, if there is one in the English version, ask to see it in the Chinese version. The paperwork I have been asked for is similar to Sandman, you must provide proof of relationship, generally your and their birth certificates (in place of household registration) and you may be asked to prove they are still living, hence a recent bill or similar in their name. You can also claim for other dependents btw, check the rules…various degrees of closeness relatives who are in college, unemployed, unable to work through illness etc.

#6

I have a, um, friend, that’s been doing that for years. That person also claimed his brother for years before he turned 18. He told the office his brother was retarded and had to go to a special school and that’s why my friend had to send him money.

He was able to use photocopies of his parents’ drivers’ licenses this year. He usually goes to AIT to get an affidavit that states he is supporting his parents, clearly writing out their names, relationship, etc., (they are both divorced and remarried, so he actually claims four parents). Any receipts from buying travellers checks, US$ checks, etc., get attached to the affidavit as proof of support.

#7

Pretty much the same as in my case. Except I only needed to provide them with one of dad’s insurance receipts bearing his address and a notarized statement that him and mum are over 60. As far as I remember, it didn’t have to be stamped by the Taiwan rep. office in UK or translated into Chinese or anything like that. Very simple.

#8

Once you establish the relationship in one tax year, you shouldn’t need any further proof of relationship in subsequent tax years. I was asked each year for proof that my parents were still alive and some kind of proof that I’d sent them money. I did use a signed statement one year (not even notarized). I never even got near AIT for any of this. The Tax Office accepted government-type health doc copies as proof that they were alive and kicking (in the States, anything with “Medicare” printed on it was good).

Interestingly, I had a joint account with my dad (in the States) while I was in Taiwan, so every time I sent money to myself, I would put the receipt in his name. It went into the same account anyway, but that slip showing the transfer of funds was considered sufficient proof that I was sending money for their support.

Also, when your parents reach 70, the deduction gets even better. With both my folks in their mid-70s (before the pressure to go back to the States becuase of their age got so great that I had to leave Taiwan!) the financial perks were great.

#9

Does anyone else have experience with this? From the mixed experiences expressed in this string of posts, I’m starting to think that two trips might be the best approach with the first being to establish with a tax rep just what documents you need.

Would love to hear from others with experience. Thanks.

#10

I give a substantial hongbao to my Taiwanese domestic partner’s mother every Spring Festival. Could I claim for that?

#11

I filed my tax return just last week and claimed a deduction for both my parents.

I needed two things:

  1. My birth certificate (which I got last time I went home)
  2. A faxed copy of a recent bank statement from both (as proof that they are still alive)

That’s it. Worked for me.

BUT, like david said in an earlier post, it all depends.

#12

Thanks, Anubis.

My wife and I might still end up claiming her parents. If we don’t and use mine, I’ll let everyone know how things went.

I’ll get the papers ready that you needed beforehand.

#13

[quote=“Anubis”]I filed my tax return just last week and claimed a deduction for both my parents.

I needed two things:

  1. My birth certificate (which I got last time I went home)
  2. A faxed copy of a recent bank statement from both (as proof that they are still alive)

That’s it. Worked for me.

BUT, like david said in an earlier post, it all depends.[/quote]

These two documents worked for me too! Thanks again.

My wife, who went to the office to file for us, was questioned about if the recent bank statement was dependable proof that my parents are still around. My wife said “yes” and that was that.

My recommendation would be to bring more than one recently dated document with your parents name on it. Or maybe a photo with them holding up a recent newspaper!

#14

just as an FYI, we deducted my parents this year after some clarification.

the lady at the office (chung li) didn’t know what to do - she wanted a “family name book” (hu ji tun bun -sp?) from canada. i tried hard not to guffaw, really. anyways, she took us to the other place to file in chung li (where foreigners are supposed to file). talked to a supervisor, who asked us for a copy of their most recent passports, which they had just renewed 5 months earlier, as proof my parents are still with us. nothing else was necessary - it was explained that the tax office is not interested in seeing if you are sending money to them, just making sure they are still alive.

it’s a sizeable deduction - 115K per parent when they are over 70 years old (85K for under 70).

great work by the chung li tax office … :notworthy:

#15

That’s good information. Thanks, x-train.

#16

You can also deduct your grandparents (not just parents) and as you mentioned, 115,000/NT is nothing to sneeze at.

#17

Has anyone claimed this deduction this year?
This year I am claiming for my father - I wired him some money during the year so should be no problem. The deduction for my father was enough to wipe out my tax liabilities.
Next year I also plan to claim for my mother (turning 60 next year) and grandmother (92) if necessary. Will I have to furnish proof that I am supporting them?

#18

Resurrecting this, anyone do this recently? I just claimed my parents in the states and they asked I provide some documentation of their address and age and that I get it authenticated. Not really sure what I should do.