每日跟讀#644: Gimme a tax break: Hands off my lottery winnings

Winning ticket holders of Taiwan Lottery or the Unified Invoice Lottery, as the system currently stands, have to pay 20 percent income tax on winnings worth NT$2,000 and above. As the threshold has existed unchanged for over 40 years, Democratic Progressive Party Legislator Shih Yi-fang has proposed a bill raising the threshold to NT$5,000. In response, Minister of Finance Su Jain-rong has promised to conduct a review and issue a report within the next three months. The ministry is expected to issue a preliminary report shortly that will detail amendments to the Standards of Withholding Rates for Various Incomes regulation. It is anticipated that this will include raising the tax-free threshold for lottery winnings from NT$2,000 to NT$5,000, coming into effect as early as December.

目前彩券或統一發票中獎獎金超過兩千元就要課徵所得稅百分之二十，由於課稅門檻已超過四十年未修正，民進黨立委施義芳提案，將課稅門檻提高至五千元，財政部長蘇建榮當時允諾三個月內提出檢討報告。據了解，財政部近期將預告修正「各類所得扣繳率標準」，將中獎獎金免稅門檻從兩千元提高到五千元，最快十二月上路。

During a question and answer session of the Legislative Yuan’s Finance Committee in early April, Shih said that although last year Taiwan Lottery scratchcards sold like hot cakes during the Lunar New Year break, due to the 20 percent tax levy, a member of the public who wins a NT$2,000 prize actually only receives NT$1,600. He gave the example of someone who spends NT$4,000 to purchase two NT$2,000 Taiwan Lottery tickets: one of the tickets wins a NT$5,000 prize, but after income tax is deducted at 20 percent — leaving NT$4,000 — and a further NT$20 of stamp duty is paid, the person is actually out of pocket by NT$20.

施義芳四月初於立法院財政委員會質詢表示，過年期間刮刮樂賣得非常好，但民眾中獎兩千元就要課稅百分之二十，等於實領一千六百元；若花四千元買兩張兩千元刮刮樂，一張中了五千元，扣掉百分之二十所得稅加上二十元印花稅，還要倒賠二十元。

Shih believes that since the Standards of Withholding Rates for Various Incomes has remained unchanged since 1979, an adjustment is now due. According to data from the Directorate-General of Budget, Accounting and Statistics, in 1979 NT$2,000 was worth NT$4,968 in today’s money. Shih says the ministry should therefore move with the times and raise the tax-free threshold for lottery winnings from NT$2,000 to NT$5,000.

施義芳認為，「各類所得扣繳率標準」自一九七九年沿用至今，已超過四十年，應有所調整；據主計總處試算系統，一九七九年的兩千元等於今年的四千九百六十八元，財政部應順應時局將中獎獎金免稅門檻從兩千元調高至五千元。

Ministry officials say that the changes will not come into effect until December due to the requirement for a communication period, and because businesses may need to make adjustments to their systems

財政部官員表示，由於修正後仍要一段宣導期，且業者系統可能要調整，因此預計今年十二月才會上路。

Source article: http://www.taipeitimes.com/News/lang/archives/2019/06/04/2003716267