Taiwan government announces tax incentives for TISA retirement accounts

The Executive Yuan has approved the second phase of the Taiwan Individual Investment Savings Account (TISA) program, introducing new tax incentives to encourage long-term retirement savings. Under the proposed plan, individuals, spouses, and dependent minor children can deduct up to 24,000 TWD per person annually from their total income for contributions made to TISA accounts.

To promote long-term asset management, withdrawals will be tax-exempt if the account holder is at least 60 years old or has held the account for at least 30 years. Tax exemptions may also apply in specific circumstances, such as the death of the account holder, diagnosis of a major illness, or other significant life events.

Existing TISA users from the first phase must establish separate accounts to access these second-phase tax benefits. Premier Cho Jung-tai has instructed the Financial Supervisory Commission and the Ministry of Finance to complete impact assessments and draft amendments to the Securities Investment Trust and Consulting Act. The government aims to complete the legislative process by 2027, with the tax benefits potentially becoming applicable for tax filings in 2028.