Taiwan’s Tax Incentives for High-Income Foreign Professionals

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.

The Bureau further explained that a common mistake made by foreign nationals applying for this tax incentive is failing to meet the requirement of having been first approved to reside in Taiwan for work purposes as a foreign special professional. This “first-time approval” means that the individual’s initial work-related residence permit in Taiwan must have been obtained either through the Employment Gold Card or a work permit for Designated foreign professionals.

If a foreign national initially comes to Taiwan under a general employment permit and residence authorization, and only later applies for an Employment Gold Card or a work permit for Designated foreign professionals, they will not be considered to have obtained their first work-related residence in Taiwan as a foreign special professional—therefore disqualifying them from the tax benefit.

For example, suppose Company A, a life insurance firm, hired Mr. J in January 2023 with an annual salary exceeding NTD10 million. Company A applied for and obtained a standard work permit for Mr. J (not for Designated foreign professionals) and secured a residence permit from the National Immigration Agency. In January 2024, the company then applied for and received a work permit for Designated foreign professionals for Mr. J. However, since Mr. J had already been residing and working in Taiwan in 2023—prior to obtaining the Designated foreign professionals work permit—he does not meet the “first-time work-related residence as a foreign special professional” requirement and therefore cannot benefit from the tax incentive.