{"id":91056,"date":"2024-01-09T12:28:59","date_gmt":"2024-01-09T04:28:59","guid":{"rendered":"https:\/\/premiatnc.com\/tw\/?page_id=91056"},"modified":"2025-06-11T13:58:48","modified_gmt":"2025-06-11T05:58:48","slug":"taxation-system","status":"publish","type":"page","link":"https:\/\/premiatnc.com\/tw\/taxation-system\/","title":{"rendered":"Taxation System"},"content":{"rendered":"\t\t
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Taxation System<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Taiwan Taxation System<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Taiwan\u00a0taxes<\/a>\u00a0can be generally categorized into (1) national taxes and (2) municipality, county and city taxes, and shown as below. Income tax, value-added tax, and customs duties for corporations and individuals are subject to national taxes, while land, building and acquisition taxes are included in local taxes. Taxes other than tariffs are collected from national tax offices under the Ministry of Finance, and local taxes are collected by tax offices under the respective local governments.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Have some questions?
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Taiwan Taxation System - Type of tax in Taiwan<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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National Tax<\/td>Local Tax<\/td><\/tr>
*Income tax<\/td>*Agricultural land tax<\/td><\/tr>
*Estate and gift tax<\/td>*Land value tax<\/td><\/tr>
Custom duties<\/td>*Land value incremental tax<\/td><\/tr>
Value-added tax<\/td>*House tax<\/td><\/tr>
Commodity tax<\/td>*Deed tax<\/td><\/tr>
Tobacco and alcohol tax<\/td>Vehicle license tax<\/td><\/tr>
*Security transaction tax<\/td>Amusement tax<\/td><\/tr>
*Future transaction tax<\/td>Stamp tax<\/td><\/tr>
Specifically selected goods and service tax<\/td>\u2013<\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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* Direct tax<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Taiwan Income Tax<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Income tax is classified into income tax for individual taxpayers and profit-seeking enterprises.<\/p>

Individual Income Tax<\/h3>

In general, individuals are taxed on their Taiwan-sourced income.<\/strong><\/p>

If you have lived in Taiwan for more than 183 days in a year, you will be classified as a resident under Taiwan\u2019s tax code and will be subject to the minimum tax calculation on the income from sources outside of Taiwan. Tax rates of 5 to 40 percent will be imposed depending on taxable income, and you can receive standard deductions, itemized deductions, and special deductions.<\/p>

If you lived in Taiwan for less than 183 days in a year, your income will be subject to withholding tax in the fixed rate from 18 to 21% depends on the type of income.<\/p>

Corporate Income Tax<\/h3>

Profit-seeking entities in Taiwan must report all its business income sourced from onshore and offshore (worldwide basis).<\/strong><\/p>

The corporate tax rate is 20%. The corporation is required to report its profit for profit-making business for the previous year by filing a statement of settlement from May 1 to May 31 every year. If your fiscal year is not from January 1 to December 31, you should report your corporate tax within five months after the end of that fiscal year.<\/p>

In case of an income sourced from outside of Taiwan, the income tax paid under the applicable country\u2019s tax laws may be deducted from the total corporate tax payment amount, but not from any tax that exceeds the tax amount calculated at Taiwan\u2019s applicable tax rate.<\/p>

Taiwan Taxation system – Withholding Tax<\/h3>

A withholding tax is an income tax paid to the government by the payer of the income rather than by the recipient. The tax is thus withheld or deducted from the income paid to the recipient. The withholding tax rate on income derived from the source of Taiwan for resident and non-resident recipients are summarized as below<\/p>
Type of Income<\/td>Resident<\/td>Non-Resident<\/td><\/tr>
Dividends<\/td>0%<\/td>21%<\/td><\/tr>
Salaries and wages, commission<\/td>5%<\/td>18%<\/td><\/tr>
Interests<\/td>10%<\/td>20%<\/td><\/tr>
Rental, royalties, professional fees<\/td>10%<\/td>20%<\/td><\/tr>
Prizes<\/td>10%<\/td>20%<\/td><\/tr>
Pension Income<\/td>6%<\/td>18%<\/td><\/tr><\/tbody><\/table>

Value-Added Tax (VAT)<\/h3>

The business tax or VAT system in Taiwan is generally similar to many European countries. Except for specified in the tax regulations, VAT is levied on the sales of goods and services within the territory of Taiwan at each stage of the supply chain. The business tax levied on imported goods are calculated at the prescribed tax rate and the gross value after custom duty, commodity tax, or tobacco and alcohol tax if applicable. The business tax or VAT rate is summarized as the table below for reference.<\/p>
Type of Business<\/td>Tax Rate<\/td><\/tr>
Regular Tax Rate<\/td>5%<\/td><\/tr>
Export goods and services<\/td>0%<\/td><\/tr>
Income from reinsurance premiums<\/td>1%<\/td><\/tr>
Night clubs and restaurants with entertainment<\/td>15%<\/td><\/tr>
Coffee shops and bars offering companionship services<\/td>25%<\/td><\/tr>
Wholesale agricultural traders or small agricultural product suppliers<\/td>0.1%<\/td><\/tr>
Small-scale businesses<\/td>1%<\/td><\/tr><\/tbody><\/table>

Taiwan Taxation system – Stamp Tax<\/h3>

The stamp tax is levied on receipts of payments, deeds of sales of movable properties and real estate transactions and contractual agreements. The type of documents and tax rates are summarized below.<\/p>
Document Type<\/td>Resident<\/td><\/tr>
Receipts of payments<\/td>0.4%<\/td><\/tr>
Deeds of sales of movable properties<\/td>NTD$12<\/td><\/tr>
Contractual agreements<\/td>0.1%<\/td><\/tr>
Deeds of real estate transactions<\/td>0.1%<\/td><\/tr><\/tbody><\/table>

The person who signs or issues the document has the responsibility to pay the stamp tax. In case if both parties want to keep the original document, both parties would be required to pay the stamp tax for the original documents.<\/p>

Commodity Tax<\/h3>

The commodity tax is a one-off tax levied upon specified commodities which are manufactured domestically or imported.<\/p>

Securities Transaction Tax<\/h3>

Except for government bonds and specified tax-exempt securities, all the securities transactions are subject to the securities transaction tax.<\/p>
Type of Securities Transactions<\/td>Tax Rate (on selling price)<\/td><\/tr>
Shares and options<\/td>0.3%<\/td><\/tr>
Transactions of futures<\/td>0.000001% to 0.6%<\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Taiwan Taxation System - Annual Filing<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\u00a0<\/td>Interim income tax<\/strong><\/td>Income tax<\/strong><\/td>VAT<\/strong><\/td>Withholding tax<\/strong><\/td><\/tr>
Frequency<\/strong><\/td>Annual<\/td>Annual<\/td>Bi-monthly (may apply for monthly)<\/td>Tax payment: monthly Reporting: annually<\/td><\/tr>
Deadline<\/strong><\/td>30 Sep of the current year<\/td>31 May of the following year<\/td>15th calendar day of the odd month<\/td>Tax payment: 10th of the following month File to tax office: 31Jan of the following year<\/td><\/tr>
Tax amount<\/strong><\/td>50% of prior year\u2019s income tax payable<\/td>Base on the profit of the preceding year<\/td>Output tax minus input tax<\/td>Tax withhold for the preceding month<\/td><\/tr>
File to<\/strong><\/td>National Taxation Bureau<\/td>National Taxation Bureau<\/td>National Taxation Bureau<\/td>National Taxation Bureau<\/td><\/tr>
Audit required<\/strong><\/td>Not required<\/td>
  • Revenue is over NTD$100m<\/li>
  • Apply for loss carry forward<\/li>
  • Listed company\/specified industry<\/li><\/ul><\/td>
Not required<\/td>Not required<\/td><\/tr><\/tbody><\/table><\/div>

Contact us<\/a>\u00a0for more details<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Frequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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WHAT MAKES ME A TAX TAIWAN RESIDENT? AND HOW TO COUNT THE STAYING DAYS?<\/h3>\n\t\t\t\t\t
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You become a Taiwan tax resident if (1) you stay in Taiwan for 183 or more days in a calendar year, or (2) you hold Taiwan nationality and have a household registered in Taiwan and stay for at least one day.<\/p>\n

Please note that the day you come to Taiwan doesn\u2019t count, but the day you leave does. It\u2019s a good idea to keep track of the number of days you have been in Taiwan via the stamps on your passport.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t

WHEN IS THE TAIWAN INCOME TAX PAYMENT DUE?<\/h3>\n\t\t\t\t\t
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Tax payments are due by June 3rd, after which there will be penalties for late payments.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t

WHAT DETERMINES THE EXTENT OF A COMPANY\u2019S LIABILITY TO PAY TAIWAN INCOME TAX ?<\/h3>\n\t\t\t\t\t
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For any company whose head office is located in Taiwan, its corporate income tax will be levied on its income derived within or outside of Taiwan (global income taxation).<\/p>\n

For any company whose head office is located outside of Taiwan, its income tax will be only levied on its income derived within Taiwan.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t

WHAT IS THE CORPORATE INCOME TAX RATE APPLIED TO A COMPANY WHOSE HEAD OFFICE IS LOCATED IN TAIWAN?<\/h3>\n\t\t\t\t\t
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FAQs for Taiwan Taxation System
\nWHAT MAKES ME A TAX TAIWAN RESIDENT? AND HOW TO COUNT THE STAYING DAYS?<\/p>\n

WHEN IS THE TAIWAN INCOME TAX PAYMENT DUE?<\/p>\n

WHAT DETERMINES THE EXTENT OF A COMPANY\u2019S LIABILITY TO PAY TAIWAN INCOME TAX ?<\/p>\n

WHAT IS THE CORPORATE INCOME TAX RATE APPLIED TO A COMPANY WHOSE HEAD OFFICE IS LOCATED IN TAIWAN?<\/p>\n

A: The Taiwan corporate income tax is calculated as below:<\/p>\n

(P = taxable income, T = tax payable)<\/p>\n

(1) If P \u2264 NTD$120,000, it is exempted from income tax.<\/p>\n

(2) If NTD$120,000<\/p>\n

NTD$200,000, T = P X 20%<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t

WHAT IS THE BUSINESS TAX SYSTEM IN TAIWAN?<\/h3>\n\t\t\t\t\t
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There are 2 business tax systems in Taiwan:<\/p>\n

1. Value-added tax(VAT): it is for general industries and levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer.
\n2. Non-value-added tax: it is for certain regulated industries, e.g. banks, clubs.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t

WHAT IS THE SCOPE OF VAT AND THE TAX RATE?<\/h3>\n\t\t\t\t\t
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The scope of VAT is as below:<\/p>\n

1. Sales of goods or services within the territory of Taiwan (including services purchased from abroad and provided or used within the territory of Taiwan)
\n2. Imported goods
\nThe VAT rate for general goods or services is currently 5% in Taiwan.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t

HOW TO CALCULATE VAT PAYABLE AMOUNT?<\/h3>\n\t\t\t\t\t
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The VAT payable amount is calculated by output VAT(generated from sales) minus input VAT(generated from costs and expenses).<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Taxation System Taiwan Taxation System Taiwan\u00a0taxes\u00a0can be generally categorized into (1) national taxes and (2) municipality, county and city taxes, and shown as below. Income tax, value-added tax, and customs duties for corporations and individuals are subject to national taxes, while land, building and acquisition taxes are included in local taxes. Taxes other than tariffs […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_crdt_document":"","content-type":"","footnotes":""},"class_list":["post-91056","page","type-page","status-publish","hentry"],"featured_image_src":null,"yoast_head":"\nTaiwan Taxation System - Premia TNC<\/title>\n<meta name=\"description\" content=\"All about Taiwan Taxation System. 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