Taiwan – Taxation

How does the tax system in Taiwan work?

Taiwan’s tax system is entirely centralised at the national level. In contrast to federal systems — such as those operating in Germany or Australia, where tax responsibilities are divided between central and regional governments — Taiwan has no sub-national income tax. All personal income tax is administered by the national government via the Ministry of Finance and its network of National Taxation Bureaus. The Ministry of Finance’s official eTax portal serves as the primary resource for current regulations and online filing: etax.nat.gov.tw.

The distinction between resident and non-resident status is fundamental, as it directly shapes the scope of a person’s tax obligations. Tax residents face potential liability on their worldwide income — that is, earnings generated both within and outside Taiwan — whereas non-residents are only taxed on income that originates from Taiwanese sources.

Tax residency in Taiwan is determined through a combination of physical presence and intent to reside. An individual who is physically present in Taiwan for more than 183 days in a given tax year will generally be treated as a tax resident. Beyond the day-count test, residency can also be established through domicile and habitual residence: a person who maintains a permanent home in Taiwan and spends a meaningful amount of time there may also qualify as a resident for tax purposes.

Taiwan’s financial year follows the calendar year, spanning from 1 January through to 31 December. This structure mirrors that used across much of continental Europe and differs from the April-to-March tax years used in the United Kingdom and India.

Regular personal income tax in Taiwan is applied on a territorial basis, while the Alternative Minimum Tax (AMT/IBT) operates on a global basis. Where an employee holds Taiwan-source employment, all income from that employment is subject to income tax. It is always prudent to consult the Ministry of Finance’s official website for the most up-to-date information, as rates and thresholds are subject to periodic revision.

Does Taiwan have double taxation agreements, and how do they affect expats?

As of 2025, Taiwan has brought into force 35 comprehensive Income Tax Agreements and 13 international Transportation Income Tax Agreements. Taiwan’s double taxation agreement policy is aimed at preventing double taxation and tax evasion while fostering bilateral relationships. These treaties are modelled on the OECD framework, with adjustments to account for each contracting party’s political, fiscal, economic, and trade circumstances.

Taiwan’s comprehensive income tax agreements span a wide range of partners across Asia — including India, Indonesia, Israel, Japan, Malaysia, Saudi Arabia, Singapore, Thailand, and Vietnam — as well as numerous European countries, among them Austria, Belgium, the Czech Republic, Denmark, France, Germany, Hungary, Italy, Luxembourg, North Macedonia, the Netherlands, Poland, Slovakia, Sweden, Switzerland, and the United Kingdom. A full and current list of treaty partners is available through the Invest Taiwan portal or the Ministry of Finance’s international fiscal affairs pages.

To avoid double taxation of income, Taiwan uses the credit method. Foreign taxes paid on income from foreign sources may be offset against the total Taiwan income tax liability, but the credit is capped at the incremental tax attributable to the foreign-sourced income. This approach resembles that taken by Japan and the Netherlands, where a foreign tax credit reduces domestic tax liability rather than granting a full exemption.

Notably, the United States has not yet concluded a formal comprehensive double taxation agreement with Taiwan, though the situation is evolving. In October 2024, the US Department of the Treasury announced the commencement of negotiations with Taiwan toward a comprehensive agreement to resolve double taxation concerns. The US House of Representatives passed the US-Taiwan Expedited Double-Tax Relief Act in January 2025, reflecting growing legislative momentum on this issue. Those potentially affected should follow developments closely via the Taiwan Ministry of Finance and consult a specialist tax adviser.

If an individual is present in Taiwan for fewer than 90 days in a taxable year, income received from a foreign employer is exempt from Taiwan income tax. Where an applicable tax treaty exists between Taiwan and the individual’s home country, this threshold can generally be extended to 183 days. This makes verifying your home country’s treaty position with Taiwan an important step before relocating.

What taxes do expats need to pay in Taiwan?

Income Tax

Taiwan’s progressive personal income tax brackets for 2024 are: 5% on income up to NT$590,000; 12% on NT$590,001–NT$1,330,000; 20% on NT$1,330,001–NT$2,660,000; 30% on NT$2,660,001–NT$4,980,000; and 40% on income exceeding NT$4,980,001. These rates are applicable to tax residents only. Always verify the current year’s thresholds at the official eTax portal.

Non-residents are generally subject to a flat 18% withholding tax on taxable salary income from Taiwan, regardless of where that salary is paid. For individuals present in Taiwan for more than 90 days but fewer than 183 days, an 18% withholding rate applies to all income, irrespective of its source.

Income Basic Tax (Alternative Minimum Tax)

In addition to the standard income tax calculated under the Income Tax Act, Taiwan also levies an Income Basic Tax (IBT) at a flat rate of 20% on individuals who qualify as tax residents — including expatriates present in Taiwan for 183 days or more in a tax year. Foreign-sourced income is included in the IBT calculation when the resident’s foreign income amounts to at least TWD 1 million and their basic income surpasses TWD 7.5 million. This mechanism is comparable to the Alternative Minimum Tax (AMT) in the United States — a parallel calculation designed to ensure that high earners cannot reduce their tax bill below a certain floor through the use of deductions and exemptions.

Capital Gains Tax

Taiwan does not impose a separate capital gains tax. Unless specifically exempted by legislation, all gains are treated as ordinary income and assessed under the standard income tax rules. The capital gains tax on securities transactions was repealed with effect from 1 January 2016. That said, certain gains may still fall within the scope of the IBT regime, so professional advice is strongly recommended before disposing of significant assets.

Property Taxes

Property-related taxes in Taiwan include the Consolidated Land and Housing Sales Tax (administered within the income tax framework), Land Value Tax, Land Value Incremental Tax, and House Tax. Rental income is subject to withholding tax at 10% for residents and 20% for non-residents. For non-resident taxpayers, the applicable property transaction tax rate is 35% for property held for more than two years and 45% for property held for two years or less (as of 2024–2025 — confirm current rates with the relevant tax authority).

Inheritance and Gift Tax

Estate tax is assessed on all property transferred upon death. Gifts exceeding TWD 50,000,000 attract gift tax at a rate of 20%. A donor is required to file a gift tax return with the local tax bureau within 30 days of making a gift, if the cumulative total of gifts made during the calendar year — including the most recent gift — exceeds the annual exemption threshold. Always verify current exemption limits with the relevant National Taxation Bureau.

Net Wealth Tax

Taiwan imposes no net wealth or net worth tax. This sets it apart from jurisdictions such as Switzerland and Norway, which levy annual charges on the aggregate value of an individual’s assets.

Social Insurance Contributions

Taiwan does not levy social security taxes as such. However, modest labour insurance premiums and national health insurance premiums are charged at various rates. The National Health Insurance Program (NHIP) contribution is approximately 1.6% of an employee’s monthly salary, up to NT$150,000. A Labour Pension Program (LPP) also exists, permitting voluntary contributions of at least 6% of monthly salary up to NT$150,000; however, foreign nationals are generally not eligible to participate unless they also hold Taiwanese nationality. These figures are current as of 2024–2025; check with your employer or the National Health Insurance Administration for the latest rates.

Dividends

Resident individuals receiving dividends from Taiwan companies have two options: they may include dividend income in their annual income tax return as taxable income and claim a tax credit of 8.5% of dividend income (subject to a cap of NT$80,000), or they may elect to have dividends taxed separately at a flat rate of 28% with no associated tax exemption.

Are there any tax breaks or special regimes for expats in Taiwan?

Qualified Foreign Professional (QFP) Benefits

Expatriates who satisfy the criteria for designation as a “Qualified Foreign Professional” (QFP) may be eligible for additional non-taxable benefits. To qualify, the expatriate’s role must be technical or specialised in nature, as defined under Taiwan’s Employment Service Act. The individual’s total annual taxable salary — combining income from both Taiwan and overseas employers — must exceed NT$1.2 million, and they must hold both a valid work permit and tax residency status in Taiwan.

Non-taxable benefits available to QFPs include reimbursements covering the cost of utilities such as water, electricity, gas, and telephone services at the QFP’s Taiwan residence, as well as educational scholarships for their children studying in Taiwan.

Employment Gold Card — Tax Concessions for High-Earning Foreign Professionals

Taiwan has introduced rules granting special income tax concessions to high-income foreign professionals who meet certain eligibility criteria, or who hold an Employment Gold Card. The programme’s purpose is to help Taiwan draw in overseas talent capable of addressing domestic skill shortages.

Under these concessions, qualifying foreign special professionals are assessed for income tax on only half of their salary above NT$3 million, and they are exempt from the alternative minimum tax on foreign-sourced income during their first five years as a Taiwan tax resident. The concession also requires that the individual has not previously held an employment work permit in Taiwan.

Should an expatriate not yet meet the conditions for tax residency, they may defer the commencement of the five-year benefit window accordingly. This arrangement bears some resemblance in spirit to Portugal’s former Non-Habitual Resident (NHR) scheme or Italy’s flat-tax regime for incoming residents — both designed to attract internationally mobile professionals — though Taiwan’s scheme is specifically salary-based and linked to a particular work permit category rather than applying a flat tax rate.

The Gold Card — often called the “4-in-1” visa — combines a resident visa, Alien Resident Certificate (ARC), multiple-entry permit, and an open work permit into a single document. The open work permit is widely regarded as its most valuable feature, as holders are free to switch employers and remain in Taiwan during periods of job transition. Further details are available at the official Employment Gold Card portal.

Standard Deductions and Exemptions for Residents

For income tax returns filed for the 2024 tax year, a personal exemption of NT$97,000 is available for each person — encompassing the taxpayer, their spouse, and dependants. The standard deduction stands at NT$131,000 for single filers and NT$262,000 for married couples filing jointly (as of 2025 — confirm the latest figures at the eTax portal). Non-residents, by contrast, are not entitled to any exemptions or deductions, regardless of the nature or amount of their income.

How and when do expats file a tax return in Taiwan?

The tax year in Taiwan runs from 1 January to 31 December. Any individual who has been present in Taiwan for 183 days or more must submit an annual income tax return covering the previous year during the period from 1 May to 31 May of the current year. Where 31 May coincides with a Saturday, Sunday, public holiday, or any other recognised holiday, the deadline is automatically pushed to the next working day. Filing after this deadline may attract penalties and interest charges.

The step-by-step filing process for foreign residents is as follows:

1. Determine your residency status. Count the total number of days you were physically present in Taiwan throughout the calendar year. A count of 183 days or more means you are a tax resident and must file a resident return. If your presence falls below this threshold, you are a non-resident and tax is typically collected through withholding at source.
2. Gather your documents. Assemble the necessary paperwork before filing, including a valid passport, tax withholding statement, dividend statement, certificate of residence, and a certificate of earnings paid abroad for services rendered in Taiwan.
3. Obtain your tax identification details. Confirm that you have your Alien Resident Certificate (ARC) number, which is required both for identification with the tax authority and for completing the online filing process.
4. File online or in person. Download the electronic tax-filing programme from tax.nat.gov.tw. Taxpayers may log in using an Alien Citizen Digital Certificate, a Registered National Health Insurance Card with password, a Financial Certification Authority (Financial CA) certificate, or by entering their ARC number together with their passport or resident permit number as shown on the ARC. Alternatively, you may file in person by taking a completed copy of your tax return and any payment due to your local National Taxation Bureau.
5. Submit supporting documents if required. Where additional documentation is needed, taxpayers must either deliver it in person or send it by post before 10 July of the filing year.
6. Declare foreign-currency income correctly. Any income received in a foreign currency must be converted into New Taiwan Dollars using official foreign exchange rates or the prevailing transfer rates applicable at the time the income was actually or constructively received.
7. Pay any tax due. Returns must be filed and any balance of tax settled between 1 May and 31 May. Locally paid salaries are subject to income tax withholding throughout the year, and any outstanding liability must be paid upon filing, by no later than 31 May of the year following the income year.

If you are uncertain whether the Income Basic Tax (IBT) applies to your circumstances, engaging a local tax adviser is a sensible precaution. Assessing whether the AMT/IBT is triggered — and working through the relevant calculation — can be a complex exercise. Individuals who believe they may fall within the scope of the IBT frequently choose to work with a qualified tax professional to confirm their compliance obligations and to gain a clearer picture of any available exemptions or deductions.

What are the tax implications of leaving Taiwan?

Departing Taiwan partway through the year creates specific tax obligations that differ considerably from the standard annual filing procedure. Understanding these requirements in advance will help you avoid unexpected liabilities once you have left the country.

Any individual who intends to leave Taiwan during the course of the year and does not plan to return before the year ends must file their income tax return approximately 10 days prior to departure. This is a significant departure from the approach used in countries such as the United Kingdom or Australia, where a final return is typically submitted after the tax year has closed, regardless of when the individual actually left.

An expatriate who is unable to file before leaving Taiwan must appoint a Taiwanese citizen of suitable financial standing to act as a guarantor, and must complete an “Agent Appointment and Acceptance” form prior to departure. This appointed agent then assumes responsibility for submitting the expatriate’s tax return and settling any tax liability in accordance with the law.

Where a Taiwan resident intends to depart and will not return within the same calendar year, the amounts for personal exemptions, the standard deduction, and the basic living expense allowance are calculated proportionally, based on the total number of days actually spent in Taiwan during that year. This means that departing mid-year does not result in forfeiting your full annual entitlement to these allowances.

If an expatriate leaves Taiwan after having been taxed at the flat non-resident rate, but subsequently returns during the same taxable year and remains long enough to accumulate 183 days or more of presence, their tax liability for that year will be recalculated under the progressive resident rate. Any tax previously paid at the flat non-resident rate will be credited against the revised assessment.

It is advisable to formally notify the relevant National Taxation Bureau of your planned departure and to ensure that all outstanding tax obligations — including any gains from property transactions or income not covered by withholding — are resolved before you leave. Income earned abroad for services performed within Taiwan, or any income that falls outside the standard withholding rules (such as proceeds from the exercise of stock options or interest on mortgages), should be declared and the associated tax paid prior to your departure.

Practical tips for managing taxes as an expat in Taiwan

• Begin tracking your days in Taiwan from the moment you arrive. Crossing the 183-day threshold transforms your entire tax position. Maintain detailed records of all entry and exit dates — including short overseas trips — since these all affect your residency calculation for the complete tax year.
• Familiarise yourself with Taiwan’s two-tier tax structure. Taiwan levies both a regular progressive income tax and a separate Income Basic Tax (IBT/AMT). The IBT does not recognise the standard deductions and personal exemptions permitted under the regular income tax. Individuals caught by the IBT must compute their liability under both systems and pay whichever amount is greater.
• Check your home country’s DTA with Taiwan at the earliest opportunity. For detailed information on Taiwan’s tax agreements, consult the Tax Treaties section or the List of ROC Double Taxation Agreements on the website of the Taxation Agency, Ministry of Finance. Knowing whether a treaty is in place — and what its provisions cover — can have a material impact on how you arrange your income streams.
• Investigate the Employment Gold Card if you may be eligible. The Gold Card’s income tax concession — allowing only half of salary above NT$3 million to be assessed for tax during the first five years — can represent substantial savings for senior professionals. Applications can be submitted via the official Gold Card portal before or after arriving in Taiwan.
• Seek advice before completing any property or asset transaction. Property transaction tax rates for non-residents are considerably high, and the IBT can capture gains that would otherwise escape regular income tax. Professional guidance well ahead of any planned sale is strongly recommended.
• Meet the May filing deadline — or arrange an agent before you leave. The annual filing window is fixed and non-negotiable. If you expect to depart Taiwan before the filing season, either submit your return in advance or formally appoint a qualified local representative to file on your behalf, in order to avoid financial penalties.
• Maintain thorough records of all foreign income. Taxpayers are required to provide a certificate of earnings notarised by the relevant overseas tax authority for any income received from an employer outside Taiwan. If a tax authority certificate is unavailable, a notarised certificate from a notary public or certified public accountant (CPA) will be accepted as an alternative.
• Engage a cross-border tax specialist. The interaction between Taiwan’s dual-tax regime and foreign income makes the tax affairs of many expatriates particularly intricate. A professional who specialises in cross-border taxation in Taiwan can help you structure your affairs efficiently while ensuring full compliance with all applicable rules.

Frequently asked questions

How does Taiwan determine whether I am a tax resident?

An individual is treated as a non-resident in Taiwan if they are not domiciled in the country and are present for fewer than 183 days during the taxable year. Conversely, spending 183 days or more in Taiwan within a calendar year — or being domiciled there and habitually residing in the country — qualifies a person as a tax resident, making them liable to progressive income tax rates on their worldwide income.

As a tax resident, am I taxed on my worldwide income?

Tax residents in Taiwan are generally subject to tax on their worldwide income, meaning earnings generated both inside and outside Taiwan are potentially taxable. In practice, the standard progressive income tax operates on a territorial basis and applies to Taiwan-source income; it is the Income Basic Tax (IBT) that draws foreign-sourced income into the taxable calculation, but only when the applicable thresholds are met.

What is the filing deadline for my annual tax return?

Annual income tax returns covering a given calendar year must ordinarily be filed and any tax balance settled by 31 May of the following year. Where this date falls on a weekend or a public holiday, the deadline is extended to the next working day. Those who plan to depart Taiwan ahead of the May filing season are required to file approximately 10 days before leaving.

Is there a wealth tax or net worth tax in Taiwan?

Taiwan does not impose any form of net wealth or net worth tax. The country does levy estate tax on property transferred at death and gift tax on qualifying gifts, but there is no annual charge based on the total value of a person’s accumulated assets.

How are pensions and retirement income taxed in Taiwan?

Employment and pension income sourced from Taiwan is subject to income tax. For tax residents, pension receipts from overseas may fall within the scope of the Income Basic Tax where they form part of foreign-sourced income that meets the relevant thresholds — specifically, foreign income of at least TWD 1 million with basic income exceeding TWD 7.5 million. Consult a tax adviser and review the eTax portal for guidance tailored to your specific circumstances.

Are capital gains from selling shares taxed in Taiwan?

Taiwan does not have a standalone capital gains tax. All gains that are not specifically exempted by law are treated as ordinary income and assessed under the regular income tax rules. The capital gains tax on securities was abolished with effect from 1 January 2016. Nevertheless, securities gains realised by tax residents may still be captured within the IBT calculation, so it is advisable to seek professional guidance before undertaking any significant transaction.

Does Taiwan have a tax treaty with the United States?

Taiwan remains the only country among the United States’ ten largest trading partners with which the US has not concluded a formal double taxation agreement. However, this is an area of active development: in October 2024, the US Department of the Treasury announced that negotiations toward a comprehensive agreement to address double taxation would commence. The US House of Representatives passed the US-Taiwan Expedited Double-Tax Relief Act in January 2025, signalling legislative commitment to resolving the issue. Individuals with US tax exposure should monitor these developments carefully and obtain advice from a specialist familiar with both tax systems.

Can I file my Taiwan tax return online?

Yes. After downloading the electronic tax-filing programme from tax.nat.gov.tw, taxpayers can access the system using an Alien Citizen Digital Certificate, a Registered National Health Insurance Card with password, a Financial Certification Authority (Financial CA) certificate, or by entering their ARC number alongside their passport or resident permit number as recorded on the ARC. Those who prefer to file in person may do so at their local National Taxation Bureau.