Explore comprehensive information about Taiwan tax for foreigners, including tax rates, guidelines, and essential insights. Our detailed guide provides everything you need to navigate the complexities of taxation in Taiwan effortlessly.
- When to file tax in Taiwan ?
- Do I need to pay Taiwan tax?
- How much is the tax rate in Taiwan?
- Are there tax exemptions in Taiwan?
- What are the standard deductions in Taiwan?
- What are the itemized deductions in Taiwan?
- How to pay taxes in Taiwan?
- How do I get my tax refund?
When to file tax in Taiwan ?
After the tax year (which is the same as the calendar year), from May 1 to May 31.You have ten days before your departure to file an early tax return if you are departing the country and do not intend to return to Taiwan. For an early filing, we advise making an in-person visit to the tax office.
Do I need to pay Taiwan tax?
You become a Taiwan tax resident :
- If you stay in Taiwan longer than 183 days, or if you are a Taiwan national and have household registration in Taiwan and visit for at least one day. The address in your ARC is not household registration, it’s a registration process from the local administrative office.
- If you stay less than 90 days in Taiwan, in general, you do not have to file taxes, and VAT or sales taxes are reimbursable.
- If you worked in Taiwan and stayed over 90 days but less than 183 days, you need to pay taxes on your Taiwan-based salary even if your income came from overseas, and you will pay a fixed rate of 6% or 18% income tax (your company may have deducted this from your salary already).
- If you have Taiwanese dual citizenship and Taiwanese house registration, then you need to pay taxes if you have stayed in Taiwan for over 31 days. Days are cumulative in a tax year, and it doesn’t matter what you came for during these days.
How much is the tax rate in Taiwan?
The income tax rate for non-residents who earn at least 1.5 the minimum wage per month (NTD 39,600 as of 2023) is 18% (you can get a tax refund if you pay 18% taxes and then become a tax resident). 18% usually is applicable to white-collar foreign workers. For non-residents who earn less than 1.5 the minimum wage per month (NTD 39,600 as of 2023), the income tax rate is 6% (you can get a tax refund if you pay 6% taxes and then become a tax resident). 6% is usually applicable to most blue-collar foreign workers.
Taiwan 2023 Progressive Tax Rate
|Net Taxable Income of year 2023 (NT$)||Tax Rate||Progressive Difference (NT$)|
|0 – 560,000||5%||0|
|560,001 – 1,260,000||12%||39,200|
|1,260,001 – 2,520,000||20%||140,000|
|2,520,001 – 4,720,000||30%||392,000|
|4,720,001 and above||40%||864,000|
If you make more than 4 million Taiwanese dollars per year, it might be best to keep the number of days in Taiwan down to 183 or below if you can to be eligible for a flat tax rate of 18%.
Are there tax exemptions in Taiwan?
Yes, the taxpayer, the taxpayer’s spouse, and each of their dependents are all free from paying taxes in the amount of NTD 92,000. A dependent’s exemption is NTD 138,000 if they are above 70.
What are the standard deductions in Taiwan?
For taxpayers who are single, the standard deduction is NTD 124,000. For married taxpayers, the standard deduction is NTD 280,000 . You are not permitted to use a standard deduction if you select an itemized deduction.
What other special deductions are there in Taiwan?
Special deductions for 2023 are as follows:
- Special Deduction for Salary or Wages: 207,000 NT per person
- Special Deduction for Savings and Investment: 270,000 NT
- Special Deduction for Tuition: 25,000 NT per person
- Special Deduction for Preschool Children: 120,000 NT per person
- Special Deduction for Disability: 207,000 NT per person
- Property transaction losses can be carried on for three years
What are the itemized deductions in Taiwan?
- Donations- up to 20% of income. Charitable donations need to be made to Taiwan officially registered educational, cultural, public welfare, or charitable organizations.
- Insurance premiums – up to NTD 24,000 per person, no limit for national health insurance.
- Medical and maternity expenses – no limit. Health fees from overseas can only be tax deductible if they are from a public university or public hospital.
- Losses from disasters – not applicable if insurance covered the losses
- Interest paid on a loan for homeowners – up to NTD 300,000
- Rental expenses – up to NTD 120,000 (this can be hard to swing as many landlords work under the table or charge a fee for household registration, so in practice no one really does this).
How to take itemized deductions on tax return?
Firstly, for single taxpayers, your itemized deductions must exceed NTD 124,000, and for married couples, it must exceed NTD 280,000. Some of the above-mentioned itemized items may appear in the online tax filing system. You still have to mail the tax office the physical receipts for every payment you make, though. The itemized deductions will not be accepted if you don’t. The tax officer will notify you via phone or email if the receipt is insufficient, giving you time to gather the necessary paperwork.
How to pay taxes in Taiwan?
You can pay by cash, check, credit card, ATM, bank transfer, or convenience store.
How do I get my tax refund?
You can get your refund by check or direct deposit. The later you send your documents the later you get your refund.
When will I get my Taiwan tax refund?
No one can say for sure. This depends on how early you submitted your tax refund, how complicated your refund is, and the arbitrary decision-making of the tax officer assigned to you.If you really want to know the timing of your tax refund, call the tax office: +886-2-2311-3711. Press 7 for English service.
For more detailed information, please visit the official website of Taiwan’s taxation authority.