Taiwan tax: deduction for parents over 60

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Taiwan tax: deduction for parents over 60

Postby highwave » 31 May 2005, 11:54

Anyone out there used a notarised statement in place of a bank transfer slip to claim a deduction for a parent over 60?

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).
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Postby sandman » 31 May 2005, 13:42

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.
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Postby david » 31 May 2005, 16:47

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.
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Postby cranky laowai » 22 May 2006, 22:17

sandman wrote:I haven't actually done it yet so I don't know if the information is correct.

How did it work out?

Anyone else have tales of evidence needed -- or not needed, as the case may be?
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Postby SuperS54 » 22 May 2006, 23:09

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.
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Postby Flicka » 23 May 2006, 08:39

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.
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Postby sandman » 23 May 2006, 12:18

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.

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.
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Postby ironlady » 23 May 2006, 21:52

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.
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any more experience with this?

Postby Shawerma » 17 Apr 2007, 20:28

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.
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Re: Taiwan tax: deduction for parents over 60

Postby Juba » 18 Apr 2007, 13:14

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