Taiwan
Eastern Asia • UTC+8 • Asia/TaipeiTaiwanese Income Tax System
Taiwan's tax system includes progressive personal income tax rates, a corporate tax rate of 20%, and a VAT rate of 5%.
Income Tax
5%–40%
Progressive rates
Corporate Tax
20%
Standard corporate tax rate
VAT / GST
5%
Standard VAT rate
Nomad Visa
Not Available
No dedicated program
Tax System Overview
Taiwan has a progressive tax system where residents are taxed on worldwide income and non-residents are taxed only on Taiwan-source income.
System Type
Progressive personal income tax
Resident Taxation
Residents are taxed on worldwide income.
Non-Resident Taxation
Non-residents are taxed only on Taiwan-source income.
Tax Year
January 1 – December 31
Income Tax Bands
Taiwan's progressive income tax bands based on annual taxable income in New Taiwan Dollars (NT$).
Tax Treaty
Double Taxation Agreements reduce withholding taxes and avoid double taxation on income from foreign sources.
United Kingdom
Treaty ActiveTaiwan and the UK have a double taxation treaty that prevents individuals and businesses from being taxed twice on the same income, reduces withholding taxes on dividends, interest, and royalties, and clarifies tax residency rules.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
- Clarifies tax residency to determine where taxes should be paid.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
United States of America
Agreement ActiveTaiwan and the US have a social security totalization agreement that prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for US–Taiwan workers.
- Allows workers who split careers between the two countries to combine contribution periods.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
20% standard rate with no notable exceptions
VAT Registration
Mandatory for businesses with annual turnover exceeding NT$480,000.
Freelancer Rules
Freelancers are subject to the same income tax rates as individuals, with deductions available for business expenses.
Crypto Policy
Cryptocurrency transactions are subject to capital gains tax.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- Low VAT rate of 5%
- Competitive corporate tax rate of 20%
Filing Roadmap
Gather Income Documents
Collect all necessary income documents, including salary slips, investment income, and any foreign income statements.
Calculate Deductions
Determine eligible deductions, such as personal exemptions and special deductions for dependents.
File Tax Return
Submit your tax return online or at a local tax office by May 31.
Pay Any Tax Due
Ensure any taxes owed are paid by the deadline to avoid penalties.