Taiwan government approves tax incentive plan for TISA accounts — Taipei Times

Taiwan’s Executive Yuan has approved a tax incentive plan for the Taiwan Individual Savings Account, or TISA, program. The proposed changes would allow taxpayers to deduct contributions of up to NT$24,000 per year for each person from their aggregate gross income. As Taipei Times reports, the initiative is intended to encourage long-term investment and retirement savings.

Terms of the tax incentives

The deduction would apply to contributions for the taxpayer, their spouse, and dependent minor children. Withdrawals are also planned to be exempt from taxation for account holders aged 60 or older, or for those who have held a special account for at least 30 years.

The Cabinet has also provided special provisions in the event of death, serious illness, and other major life circumstances. These measures require legislative amendments to take effect.

Implementation plans

The Financial Supervisory Commission is to prepare amendments to the Securities Investment Trust and Consulting Act for consideration by the Cabinet. Authorities aim to complete the legislative process next year so that the incentives can be applied when income tax returns are filed in 2028. The issue of possible retroactive application of the benefits is still under discussion.

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Development of the TISA program

The TISA program was launched in July 2025 as a mechanism for regular long-term investment. Premier Cho Jung-tai said the government expects to make it the third component of the pension system, alongside labor insurance payments and employer-funded pensions.

TISA assets have already exceeded NT$21.64 billion, while the number of opened accounts has reached more than 270,000. At the first stage of the program, there were 53 funds with special TISA share classes, and including the funds of the “I Really Want to Retire” initiative, their number stood at 84.

The first stage of TISA does not provide tax incentives and will operate in parallel with the proposed TISA 2.0 program. Current account holders will be able to keep their existing accounts or open separate ones to qualify for the new tax benefits.