Income Gap Widens in Taiwan

Taipei, April 11, 2011 (CENS)--Local families in the 10% highest income bracket raked in NT$2.81 million of income in 2009, 28 times NT$99,000 earned by those in the 10% lowest bracket, a record difference and compared with 2008's 26.47 times, according to the statistics of the Ministry of Finance.

Under the impact of the financial tsunami, incomes of local families suffered a general decline in 2009. The poorest families saw their average income drop by 19% from NT$122,000 in the previous year, that the richest families registered a decline of 13%, from NT$3.32 million. The higher rate of decline for the poorest families was the main reason for the increase in income gap.

In 2009, 5.34 million families filed income tax returns, for total reported income of NT$4.24 trillion. Another 2.23 million families didn't have to pay any tax, including 1.71 million families, or 32%, with income less than NT$500,000.

Major income sources of low- and medium-income families were salary income. For those families subject to the lowest 6% tax, their salary income reached NT$540,000 on average.

Major income source of those with annual income exceeding NT$10 million was stock dividend, which generated NT$18.36 million on average for those families.

Average family income in Taipei city reached NT$1.13 million, followed by Hsinchu City with NT$1.04 million.