Tax

If you have met all of the following requirements you are eligible to apply for tax incentives:

1. You have been approved for the first time to reside in the R.O.C. for the purpose of work.
2. You have engaged in professional work related to the recognized special expertise in the R.O.C.
3. During the last 5 years prior to the day of your employment engaged in professional work or the day of obtaining your Employment Gold Card, you did not have household registration in the R.O.C. and were not an resident individual of the R.O.C. in accordance with the Income Tax Act.

For related regulations, please see Article 3 of the Regulations Governing Reduction and Exemption of Income Tax of Foreign Specialist Professionals and Article 20 of the Act for the Recruitment and Employment of Foreign Professionals.

If the foreign company has no business premises or revenue in Taiwan and only has employee expenses, the foreign company can subtract its expenses from its income, resulting in a negative number, and therefore does not need to declare taxes. However, the Taiwan-based employees of the foreign company must declare their personal income tax in accordance with the law. For more information please refer to the following website.

For information and precautions regarding personal income tax, please refer to the following website.

Please contact the National Taxation Bureau of Taipei, Ministry of Finance .

Starting from January 1, 2023, if the foreign national resides in Taiwan for more than 183 days and their overseas company operates in accordance with the Controlled Foreign Company (CFC) Rule, it must declare profit-seeking enterprise income tax. For more information on the CFC anti-tax avoidance tax rules, please refer to this website .

If you have any questions about the CFC system, please contact the Ministry of Finance’s toll-free number 0800-000-321. For more information about the CFC system, please refer to the Ministry of Finance’s website .

According to Article 20 of the Act for the Recruitment and Employment of Foreign Professionals , if you meet all the following requirements, you are eligible to apply for tax benefits:

1. You have been approved for the first time to reside in the R.O.C. for the purpose of work. (See Note)
2. You have engaged in professional work related to the recognized special expertise in the R.O.C.
3. During the last 5 years prior to the day of your employment engaged in professional work or the day of obtaining your Employment Gold Card, you did not have household registration in the R.O.C. and were not a resident individual of the R.O.C. in accordance with the Income Tax Act.

Note: You must also stay in Taiwan for at least 183 days within the tax year

Please refer to Article 3 of the Regulations Governing Reduction and Exemption of Income Tax of Foreign Specialist Professionals and Article 20 of the Act for the Recruitment and Employment of Foreign Professionals .

If a Taiwan-based company hires foreign employees, it will not affect the amount of business income tax collected by the government. According to the Business Income Tax Division of the Taipei National Taxation Bureau, tax incentives for foreign general professionals and specific professionals are handled in accordance with legal regulations, and hiring foreign employees does not affect the collection of business income tax. Please refer to the Opens a new window: goto Regulations Governing Reduction and Exemption of Income Tax of Foreign Special Professionals for more details.

A foreign special professional meeting the requirements of tax incentives shall apply for the tax incentives to the competent tax authority when filing his/her annual income tax return in May every year or the departure income tax return before leaving the R.O.C.

• For those obtaining the foreign special professional employment (work) permit, the required documents are as follows:

  1. Application for Exemption from Income Tax for Foreign Special Professionals.
  2. The supporting document of the first-time approval to reside in the R.O.C. for the purpose of work (i.e.: a photocopy of the ARC with the reason for work); in the case of a foreign special professional having been previously approved to reside in the R.O.C., the supporting document showing the previous approval not related to the engagement of the professional work is also required (i.e.: a photocopy of the ARC for study or as a dependent).
  3. A photocopy of the foreign special professional employment (work) permit document issued by the Ministry of Labor or by the Ministry of Education.
  4. An employment contract and other supporting documents showing the employment engaged in professional work is related to the recognized special expertise.

• For those obtaining the Employment Gold Card, the required documents are as follows:

  1. Application for Exemption from Income Tax for Foreign Special Professionals.
  2. A photocopy of the Employment Gold Card with the first-time approval to reside in the R.O.C. for the purpose of work; in the case a foreign special professional having been previously approved to reside in the R.O.C., the supporting document showing the previous approval not related to the engagement of the professional work is also required (i.e.: a photocopy of the ARC for study or as a dependent).
  3. An employment contract and other supporting documents showing the employment engaged in professional work is related to the recognized special expertise.

• For those who are exempted from applying for the work permits in accordance with Article 7 of the Act, the required documents are as follows:

  1. Application for Exemption from Income Tax for Foreign Special Professionals.
  2. The supporting document of the first-time approval to reside in the R.O.C. for the purpose of work (i.e.: a photocopy of the ARC with the reason for work); in the case of a foreign special professional having been previously approved to reside in the R.O.C., the supporting document showing the previous approval not related to the engagement of the professional work is also required (i.e.: a photocopy of the ARC for study or as a dependent).
  3. A photocopy of the relevant certificate of having special expertise issued by the central competent authority.
  4. An employment contract and other supporting documents showing the employment engaged in professional work is related to the recognized special expertise.

If the overseas company does not have business premises or revenue in Taiwan and only has employee salary expenses, it does not need to file taxes in Taiwan.

For more information, please refer to the Ministry of Finance website .

For a foreigner who remains in the R.O.C. within one taxable year:

(1) Not more than 90 days:

A. The income tax shall be withheld at the income sources or declared and taxed in accordance with the withholding rate.

B. The income tax shall be exempted for income derived from employer(s) outside the R.O.C.

(2) More than 90 days:

A. The income derived within the R.O.C. shall be filed in accordance with a withholding statement as declared by the taxpayer.

B. Income paid by an employer outside the territory of the R.O.C. must also be reported by the taxpayer. The taxpayer will be required to submit a certificate of earnings notarized by the tax authorities concerned from the employer(s) outside the territory of the R.O.C. If a certificate from the tax authorities is not available, a notarized certificate issued by a notary public or certified public accountant (CPA) is acceptable. In the case where such a certificate is to be used, a photocopy of the license of the CPA who issued the certificate must also be submitted. If the taxpayer fails to submit a certificate of earnings issued by the tax authority or certified by a notary public or CPA, the tax office will assess the amount payable according to the standard amounts. Any income received in foreign currency should be exchanged into New Taiwan Dollars (NT$) on the basis of the official foreign exchange rates or prevailing transfer rates at the time the income is actually or constructively received.

Please review the Instructions for Alien Individual Income Tax .

If you have any specific tax questions, please call the National Taxation Bureau at +886-2-23113711 #1116

For a standard overseas company, it is not required to pay taxes in Taiwan. However, if the company distributes dividends and the overseas income exceeds the exemption threshold of NT$7.5 million, personal income tax on the dividends must still be paid. If a foreign national resides in Taiwan for more than 183 days and their overseas company qualifies as a Controlled Foreign Company (CFC) (such as companies in the Cayman Islands, British Virgin Islands, etc.), that company must report business income tax.

If you have any questions about the CFC, please call the Ministry of Finance’s toll-free hotline at 0800-000-321. For more information on the CFC system, please refer to the Ministry of Finance website .

1. The tax incentives regulated in the “Act for the Recruitment and Employment of Foreign Professionals” (hereinafter referred to as “the Act”) came into force on February 8, 2018. A qualified foreign special professional can apply for this tax relief from 2018. In order to strengthen the incentives for recruiting foreign special professionals, full text of the Act was amended and promulgated on July 7, 2021, and the Act was executed on October 25, 2021 by the Executive Yuan. Among the amendments include the extension of the applicable period of tax incentives from 3 years to 5 years as specified in Article 20 (formerly Article 9).
2. From 2018, if a foreigner engages in professional work and meets certain requirements, then within 5 years starting from the tax year in which the foreign special professional for the first time meets the conditions of residing in the R.O.C. for 183 days or more, and having a salary income of more than NT$3,000,000, only the NT$3,000,000 salary income and half of the amount above the NT$3,000,000 in each such tax year shall be included in the gross income for the assessment of individual income tax liability. If the foreigner obtains overseas income set forth in the provisions of Subparagraph 1, Paragraph 1, Article 12 of the Income Basic Tax Act in such tax year, such income shall be excluded from the basic income.
3. A foreign special professional who applied for the tax incentives of the Act before July 7, 2021 may apply for the tax benefits for a period of 5 years. For example, if he/she applied for the tax incentives from 2018 to 2020 and meets the regulations in the years of 2021 and 2022, he/she can also apply for the tax incentives.

Gold Card holders who meet the conditions for tax incentives should apply to the tax authorities during the annual individual income tax filing period (in May of the year following the income year) or when filing a departure tax return.

The remuneration for services provided while physically in Taiwan is classified as “Income from Sources in the Republic of China (See Note 1)” and is subject to individual income tax. The tax requirements for foreigners vary depending on the duration of their stay in Taiwan (See Note 2).

Note 1: For the definition of Income from Sources in the Republic of China, please refer to Article 8 of the Income Tax Act .

Note 2: For details on residency duration and tax requirements, please refer to the National Taxation Bureau’s explanation .

For more details, please review the Instructions for Alien Individual Income Tax . If you have any specific tax questions, please contact the Taxation Bureau .

The National Taxation Bureau begins accepting individual income tax filings in May. If you plan to depart Taiwan before May, please complete your tax filing in advance. The tax filing process varies depending on your employment situation, as detailed below:

Scenario 1: Employer is a Taiwan-based company (with withholding statement) Your employer in Taiwan will provide a withholding statement. Please use this document to complete your tax filing.

Scenario 2: Employer is an individual in Taiwan (no withholding statement) You must provide relevant payment proof, such as remittance records or pay stubs, along with supporting documents like your employment contract.

Scenario 3: Employer is an overseas company For tax filing, prepare documents certified by foreign tax authorities, along with original income documents notarized by a certified foreign accountant or notary public, and a copy of the accountant’s license. If you cannot provide these documents, please submit other documents such as invoices or contracts that verify the source and amount of income.

For information on tax filing, please refer to Tax Resident Status and Related Filing Procedures .

The term “first 5 years” in the tax incentives shall start from the year when the foreign special professional has resided in the R.O.C. for 183 days or more for the first time, and has an annual salary income over NT$3,000,000. The taxpayer cannot choose the starting year and applicable years as he/she wishes.

Example of engaging in professional work in the R.O.C. for the first time in 2021:

David, obtaining the foreign special professional employment permit in 2021 and meeting the requirements, stays in the R.O.C. for 183 days or more and has an annual salary income over NT$3,000,000 derived from his special professional work during the years 2021 ~ 2025. Year 2021 is the first applicable year and David can apply for the tax incentives from 2021 to 2025.

Close

Whether or not a company hires a Gold Card holder does not impact its profit-seeking enterprise income tax. Additionally, any tax benefits for Gold Card holders have no effect on a company’s obligations for this tax.

If a foreign special professional meeting requirements obtains the income set forth in Subparagraph 1, Paragraph 1, Article 12 of the Income Basic Tax Act in such applicable tax year, such income may be excluded from the income basic tax. However, if he/she obtains other kinds of basic income other than overseas income (such as income derived from securities transactions), and the sum of such income and the net taxable income exceeds the threshold (NT$6,700,000 from the tax year 2021), he/she shall still file the income basic tax return.

You may calculate it through the Ministry of Finance’s eTax Portal .

1. Employment Gold Card Holders—– Employment Gold Card and Employment Contract.

2. Foreign Special Professionals—– Alien Resident Certificate, Work Permit Letter issued by the Ministry of Labor, and Employment Contract.

   Please refer to the Application Form for Exemption from Income Tax for Foreign Special Professionals.

In accordance with Article 25 of the Act for the Recruitment and Employment of Foreign Professionals , an ROC national who concurrently holds foreign nationality and has not established household registration in the R.O.C., and who has resided in the R.O.C. as holder of a foreign passport to engage in professional work or to seek employment, shall be treated in accordance with the requirements of the Act. In other words, those with dual nationalities are also eligible to apply for the tax incentives for foreign special professionals as regulated by Article 20 of the Act, and he/she should fill the application for Exemption from Income Tax for Foreign Special Professionals and certify that the nationality information is true and correct to the best of his/her knowledge and belief.

The legal bases for tax incentives for specific foreign professionals are as follows: Articles 3 of the Regulations Governing Reduction and Exemption of Income Tax of Foreign Specialist Professionals and Article 20 of the Act for the Recruitment and Employment of Foreign Professionals.

For Gold Card holders who meet the conditions for tax benefits, for five years counting from the tax year in which they first meet the conditions, half of the part of their salary income above three million NT dollars in each such tax year in which they reside in the State for 183 full days will be excluded from the assessment of individual income tax. Additionally, if in any of those taxable years they receive overseas income classified under Article 12, Paragraph 1, Subparagraph 1 of the Basic Income Tax Act, that income will also be exempt from being included in the calculation of their basic income for determining the basic tax amount.

Please note: Foreign professionals must still meet specific conditions after obtaining their Gold Card to enjoy tax benefits. Please refer to the relevant regulations for qualification details: Articles 3 of the Regulations Governing Reduction and Exemption of Income Tax of Foreign Specialist Professionals and Article 20 of the Act for the Recruitment and Employment of Foreign Professionals.

If you have previously been approved to reside in the R.O.C. before your employment engaged in professional work in the R.O.C., such approval is not given because of your engagement in the professional work (such as residence for study or as dependents); therefore, you are exempt from the first-time approval limitation.

Foreign professionals who meet the specified criteria may simultaneously benefit from both incentives.

Source: ‘Scope of Tax Incentives for Foreign Professionals’ (Ministry of Finance Notice No. 09600511820, issued on January 8, 2008, and amended by Notice No. 09804119810 on March 12, 2010).

For criteria and full details, please refer to: Article 20 of the Act for the Recruitment and Employment of Foreign Professionals , The Scope of Application for Tax Preferences Provided to Foreign Professionals , and Articles 3 of the Regulations Governing Reduction and Exemption of Income Tax of Foreign Specialist Professionals

The five-year period for income tax incentives starts from the first year the Gold Card holder meets all criteria for the tax benefits.

As an example: David obtained his Employment Gold Card in 2021. From 2021 to 2025, he resided in Taiwan for more than 183 days each year, earned a salary exceeding 3 million NTD from professional work, and met other tax incentive requirements. Therefore, the tax incentive period starts from 2021, making him eligible for tax reductions from 2021 to 2025.

Close

Please note: Foreign professionals must still meet specific conditions after obtaining their Gold Card to enjoy tax benefits. Please refer to the relevant regulations for qualification details: Articles 3 of the Regulations Governing Reduction and Exemption of Income Tax of Foreign Specialist Professionals and Article 20 of the Act for the Recruitment and Employment of Foreign Professionals .

If a Gold Card holder meeting the tax benefits requirements obtains the income set forth in Subparagraph 1, Paragraph 1, Article 12 of the Income Basic Tax Act in such applicable tax year, such income may be excluded from the income basic tax. However, if he/she obtains other kinds of basic income other than overseas income (such as income derived from securities transactions), and the sum of such income and the net taxable income exceeds the threshold of NT$7,500,000 (as of 2024), he/she shall still file the income basic tax return.

This refers to an individual who has no household registration in the R.O.C. and stays less than 183 days within each year (1/1~12/31).

1. Application Form for Exemption from Income Tax for Foreign Special Professionals (see attached).
2. A copy of the Employment Gold Card, which should be the applicant’s first resident certificate approved for work; if it is not the first approval for residence, additional supporting documents should be provided to confirm that previous residence was for reasons other than work (such as a copy of a resident certificate for studies or as a dependent).
3. Employment contract and other sufficient supporting documents proving the actual engagement in professional work related to the professional field indicated on the Gold Card.

Since your salary income is less than NT$3,000,000 or the total days of your stay in the R.O.C. is less than 183 days in 2021, 2022 is the first year in which you qualify for tax incentives, and the tax incentives last for 5 years (from 2022 to 2026). Therefore, the applicable years for your tax incentives are 2022 ~ 2026.

Close

1. The amount of income from salaries shall include all salaries after deducting the special deduction of income from salaries or necessary expenses. Assuming a special deduction of income from salaries NT$200,000 in this case, then a salary income of NT$8,000,000 (= NT$8,200,000 – NT$200,000).

2. Amount of non-taxable salary income = (NT$8,000,000 – NT$3,000,000) *50% =NT$2,500,000

   Amount of taxable salary income = NT$8,000,000-NT$2,500,000=NT$5,500,000

3. Overseas income NT$2,000,000 is excluded from basic income.

Dual nationals can apply for income tax reductions. ( Article 20 of the Act for the Recruitment and Employment of Foreign Professionals )

Note: Citizens of the R.O.C. with foreign nationality, who do not hold household registration in the R.O.C. and enter using a foreign passport for professional work or job-seeking, are subject to regulations for foreign professionals. ( Article 25 of the Act for the Recruitment and Employment of Foreign Professional Talent ).

If you were approved to reside in the R.O.C. before obtaining your Gold Card, and that approval was not based on work (for example, if it was for study or as a dependent), then you are exempt from the first-time approval limitation.

This refers to an individual who has no household registration in the R.O.C. and stays less than 183 days within each year (1/1~12/31).

As an example, if you receive the Gold Card in 2021, but you only first meet all the conditions for tax incentives in 2022, then 2022 will be the starting point. You can apply for income tax reductions for a period of five years, ending in 2026.

Close

Hong Kong or Macau residents are also eligible to apply for the tax incentives for foreign special professionals as regulated by Article 20 of the Act.

Note: In accordance with Article 24 of the Act for the Recruitment and Employment of Foreign Professionals , the provisions apply mutatis mutandis to residents of Hong Kong and Macau areas.

• Domestic Income After Deductions:

  Deduction Amount = (8.2 million TWD - Special Salary Deduction of 200,000 TWD - 3 million TWD) * 50% = 2.5 million TWD

  Domestic Income After Deductions = 8.2 million TWD - Special Salary Deduction of 200,000 TWD - Deduction Amount of 2.5 million TWD = 5.5 million TWD

• Overseas Income After Deductions: Overseas Income After Deductions = 0 (For those who meet the tax incentive criteria, all overseas income is tax-exempt)

Yes, if you disagree with your final assessment, you can apply for a tax recheck, depending on your case. For more information, you can visit the Ministry of Finance web portal.

Yes, if you disagree with your final assessment, you can apply for a tax recheck. For more information, you can visit the Ministry of Finance web portal

To apply for a tax refund, you can proceed to an inquiry on the Ministry of Finance following portal . For any individual income tax related questions, you can refer to the Ministry of Finance website FAQ .