Tel: (886) 3 6587666
Hsin Chu Office Address:
146, Sec. 1, Tung Hsing Road,
Chupei City, Hsin Chu, Taiwan
Tel: (886) 3 6587666
Hsin Chu Office Address:
146, Sec. 1, Tung Hsing Road,
Chupei City, Hsin Chu, Taiwan
Tax Base
For any individual having income from sources in Taiwan, income tax is levied in accordance with the Income Tax Act. Income tax will be withheld and paid at the respective sources for a nonresident individual in Taiwan.
Resident
An individual is considered a resident in Taiwan for income tax purposes if
Tax Filing
A resident individual needs file annual income tax return and pay any tax due between May 1 and May 31 of the following year.
A nonresident individual needs file income tax return and pay any tax due before departing Taiwan if he or she has income not subject to any withholding tax category.
Tax Rates
Summary of the net taxable income of an individual :
|
Personal Exemption |
Deductions |
Tax rate |
||
---|---|---|---|---|---|
Resident |
yes |
yes |
Net Taxable Income of year 2018 (NT$) |
Progressive tax rates for year 2018 |
Progressive Difference (NT$) |
0 - 540,000 |
5% |
0 |
|||
540,001 - 1,210,000 |
12% |
37,800 |
|||
1,210,001 - 2,420,000 |
20% |
134,600 |
|||
2,420,001 - 4,530,000 |
30% |
376,600 |
|||
4,530,001 and above |
40% |
829,600 |
|||
Non-Resident |
NA |
NA |
15%~21% ( income tax rates depending on the type of income obtained ) |
Alternative Minimum Tax (AMT)
As of January 1, 2006, the AMT has been effective and is applicable to resident individuals. In accordance with Income Basic Tax Act, if a resident individual has the basic incomes more than NT$6.7 million, he or she needs to report the basic income tax at the current rate of 20%.
Please note that as per Article 12 of Income Basic Tax Act, if the aggregate offshore income is less than NT$1 million, it may be excluded from the basic income.
Income Tax on Dividend
A new dividend tax regime was implemented in 2018 where resident individuals can choose one of the following two ways for filing tax returns:
Income Tax on House and Land Transactions
A new Income Tax on House and Land Transactions regime was implemented since January 1, 2016. An individual who has income from transaction of house or land, shall fill house and land transactions income tax return within 30 days after completing ownership transfer registration :
Taxable income = the transaction price - the original cost - all expenses necessary for acquisition, improvement, and ownership transfer.
Tax rate :
|
condition |
Tax rate |
|||
---|---|---|---|---|---|
Resident |
possession period |
no more than 1 year |
45% |
||
more than 1 year but no more than 2 years |
35% |
||||
more than 2 years but no more than 10 years |
20% |
||||
more than 10 years |
15% |
||||
Self-use house and land : The portion of taxable income exceeds the exempt (NT$4M) |
10% |
||||
Non-Resident |
possession period |
no more than 1 year |
45% |
||
more than 1 year |
35% |