Taxes in Taiwan
Understanding Taiwan's tax system is essential for expats, especially given the generous tax benefits available to Gold Card holders and other foreign professionals.
Tax Residency
You're a Taiwan tax resident if:
- You have a domicile in Taiwan AND habitually reside there, OR
- You stay in Taiwan 183+ days in a calendar year
Tax implications:
- Residents: Taxed on worldwide income
- Non-residents (<183 days): Taxed only on Taiwan-source income
Income Tax Rates 2026
For Tax Residents (Progressive Rates):
| Income (NT$) | Rate |
|---|---|
| 0 - 560,000 | 5% |
| 560,001 - 1,260,000 | 12% |
| 1,260,001 - 2,520,000 | 20% |
| 2,520,001 - 4,720,000 | 30% |
| Over 4,720,000 | 40% |
For Non-Residents:
- 18% flat rate on Taiwan-source income (under 90 days)
- 18% on all income (90-183 days)
Gold Card Tax Benefits
Foreign Special Professional concessions (first 5 years):
- 50% exemption on salary above NT$3 million
- Exemption from Alternative Minimum Tax on foreign income
- Must be first time receiving Taiwan work permit
Example:
- Salary: NT$5 million/year
- First NT$3 million: Taxed normally
- Remaining NT$2 million: Only NT$1 million taxed (50% exemption)
Important Tax Considerations
Digital Nomad Visa holders:
- If in Taiwan 183+ days: Potentially tax resident
- Worldwide income may become taxable
- Plan carefully around the 183-day threshold
Foreign-Source Income:
- Taxed for residents under Alternative Minimum Tax (AMT)
- AMT rate: 20% on amount over NT$750,000
- Gold Card holders exempt from AMT for 5 years
Filing & Deadlines
Tax year: January 1 - December 31
Filing period: May 1-31 (following year)
How to file:
- Online filing available (partially in English)
- In-person at tax office
- Through accountant
Documents needed:
- Withholding certificates
- ARC/passport
- Bank details for refund
- Foreign income documentation (if applicable)
Deductions & Credits
Standard deduction (2026):
- Single: NT$124,000
- Married filing jointly: NT$248,000
Personal exemption: NT$92,000 per person
Common deductions:
- Insurance premiums
- Medical expenses
- Mortgage interest
- Charitable donations
- Education expenses
Other Taxes
| Tax | Rate | Notes |
|---|---|---|
| Capital gains (securities) | 0% | Currently exempt |
| Dividend income | Included in income | 8.5% credit available |
| Property tax | 1.2-5.4% | Based on assessed value |
| VAT (Business tax) | 5% | Included in prices |
| Inheritance tax | 10-20% | Progressive |
Tips for Expat Tax Planning
- Track days carefully if approaching 183-day threshold
- Keep records of foreign income and taxes paid
- Understand Gold Card benefits if applicable
- Hire an accountant for complex situations
- File on time to avoid penalties
- Check tax treaties - Taiwan has agreements with some countries
Tax Treaty Countries
Taiwan has tax treaties with:
- UK, France, Germany, Netherlands, Belgium, Denmark, Sweden
- Australia, New Zealand, Canada
- Japan, Singapore, Indonesia, Malaysia
- Various others
Benefits: May reduce double taxation, withholding rates
Pro Tips
- •Gold Card holders get significant tax benefits - 50% exemption on high salaries
- •Track your days carefully if close to 183-day tax residency threshold
- •Taiwan has no capital gains tax on securities
- •File in May for the previous year's income
- •Consider hiring an accountant for complex foreign income situations
Have questions about taxes in Taiwan?