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Q:
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Is the NHI supplementary premium the same as the second-generation NHI (2nd gen NHI)?
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A:
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Yes. The 2nd gen NHI which came into effect on 1 January 2013, was introduced to make the premium system fairer and to improve the financial sustainability of Taiwan’s NHI program. Under the 2nd gen NHI, health insurance premiums consist of two components:
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General Insurance Premium - This is the same as the traditional NHI premium and is calculated primarily based on an individual's regular salary or wages.
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Supplementary Insurance Premium - This applies to certain additional sources of income. For example, if an individual receives a bonus exceeding four times their insured monthly salary, or earns professional service income, dividend income, interest income, rental income, or part-time income paid by an employer other than the insured unit, the paying entity is generally required to withhold a 2.11% NHI supplementary premium on the applicable amount.
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Q:
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When is the NHI supplementary premium required to be withheld?
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A:
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A 2.11% NHI supplementary premium must be withheld when any of the following types of income meet the applicable threshold (or exceed the prescribed cumulative limit):
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Bonuses – The portion of annual bonuses that exceeds four times the recipient's insured monthly salary.
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Part-time Salary Income – Part-time salary paid to an individual who is not enrolled in NHI through the paying entity, where a single payment is equal to or exceeds the statutory minimum monthly wage (currently TWD 29,500).
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Professional Service Income – Such as manuscript fees, speaking fees, and other professional service remuneration.
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Dividend Income – A single dividend payment (cash or stock dividends) exceeding TWD 20,000.
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Interest Income – A single interest payment exceeding TWD 20,000.
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Rental Income – A single rental payment exceeding TWD 20,000.
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Q:
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When should the NHI supplementary premium be paid?
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A:
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The 2.11%NHI supplementary premium must be withheld at the time the applicable income is paid. The withheld premium must be reported and paid by the end of the following month, with a 15-day grace period. Late payments are subject to a 0.1% daily surcharge, up to a maximum of 15% of the amount due.
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Q:
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Can disadvantaged individuals be exempt from the NHI supplementary premium?
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A:
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Yes. eligible low-income and disadvantaged individuals may be exempt from the NHI supplementary premium if a single payment is below the statutory minimum monthly wage. To qualify for the exemption, the recipient must provide the paying entity with the required supporting documents as proof of eligibility.
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Q:
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Can the NHI supplementary premium be claimed as an itemized deduction when filing income tax?
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A:
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Yes. The NHI supplementary premium is fully deductible as an itemized deduction for income tax purposes and is not subject to the annual insurance premium deduction limit. taxpayers may use a withholding certificate issued by the paying entity or a payment certificate issued by the national health insurance administration as supporting documentation.
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