If your business operated for less than a full tax year, special tax rules apply for calculating income and tax payable. Here's how to annualize and adjust income properly under Taiwan’s Income Tax Act.

The Taipei National Taxation Bureau of the Ministry of Finance stated that, in order to enhance Taiwan’s competitiveness in the global talent market and continue attracting foreign professionals to develop their careers in Taiwan, Article 20 of the Act for the Recruitment and Employment of Foreign Professionals provides a special tax incentive for qualifying foreign special professionals. Under this provision, a foreign special professional—officially recognized and announced by the competent central authority as possessing expertise needed in Taiwan—may be eligible for a five-year tax benefit. Specifically, if it is their first time being approved to work in Taiwan, and they reside in Taiwan for at least 183 days in a given tax year while earning more than NTD3 million in salary income, then 50% of the portion of their salary exceeding NTD3 million may be excluded from their taxable individual income.