Expatriate tax ebook - Taiwan

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
Expatriates who require a work visa must apply for this before taking up employment in Taiwan. It is, therefore, important that the expatriate’s employment contract and benefit package is structured in a tax-efficient manner before the contract is submitted to the immigration department.

Employment visas
Expatriates taking up employment in Taiwan must apply for an employment visa before commencing employment. The immigration department places emphasis on the education level and skills of the expatriate and the economic benefit to Taiwan that the expatriate's employment will bring.

If the expatriate’s spouse and dependent family relocate to Taiwan they will require dependent visas. Spouses entering Taiwan on dependent visas are not normally allowed to take up employment in Taiwan. They must apply for a separate employment visa if they wish to work in Taiwan.

Tax year
The Taiwanese tax year runs from 1 January to 31 December.

Tax returns and compliance
Expatriates have to file an individual tax return each year, normally by 31 May.

Income tax rates
Tax is charged on net assessable income less a special deduction from salaries and wages, allowable deductions, standard deductions or itemised deductions and personal exemptions at the following rates:

2010 (NT$)	Rate (%)	Progressive difference
0 – 500,000	5	0
500,001 – 1,130,000	12	35,000
1,130,001 – 2,260,000	20	125,400
2,260,001 – 4,230,000	30	351,400
Remainder	40	774,400

Personal allowances – 2010
Taxpayers in Taiwan are entitled to the following allowances:

	(NT$)
Standard deduction – single	76,000
Standard deduction – married, filed jointly	152,000
Special deduction for salary or wages	104,000
Personal exemption – taxpayer, spouse, dependents	82,000 per person
Personal exemption – dependents (over 70 years old)	123,000 per person

Sample income tax calculation

(NT$)
Total annual salary		3,600,000

Less : exemptions and deductions
Exemptions		410,000
Standard deductions		152,000
Wage deduction		104,000
Total exemptions and deductions		666,000

Net taxable income		2,934,000
Tax rate		30%
Less: progressive difference		35,000

Tax payable		528,800

Information about Taiwan:

tax planning opportunities

Last updated 16 June 2011

This information has been provided by Grant Thornton Taiwan, a member firm within Grant Thornton International Ltd, and is for informational purposes only. Neither Grant Thornton Taiwan nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.

Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by the member firms.
Disclaimer

Contact us

For further information on expatriate tax services in Taiwan please contact Jay Lo.

Related websites

Ministry of finance

Taipei National Tax Administration

National Tax Administration of Southern Taiwan (NTAS)

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