Tax

FAQ

Here is a summary of frequently asked questions regarding the Taiwan Employment Gold Card program, the application process, and other general questions regarding life in Taiwan and more.

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  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.

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.

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. In other words, 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.

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 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

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.

Please try using the Quick Calculation of Alien Individual Income Tax for Year 2021 through the Ministry of Finance’s eTax Portal .

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).

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.

Tax Example

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.

  1. According to “The Scope of Application for Tax Preferences Provided to Foreign Professionals” (promulgated by Decree No. 09804119810 and issued by the Ministry of Finance on March 12, 2010), if an employer hires a foreign professional qualified for the tax preferences, the payment made in accordance with the content of an employment contract may be declared as operation expenses by the employer, such as the round trip air fare of the foreign professionals and his/her family, home leave vacation pay according to the contract, home moving expenses, utility bills, cleaning bills, telephone bills, house rentals, repair costs for place of residence, and educational scholarships for children and such items may be excluded from the taxable income of the foreign professionals.
  2. The “tax preferences provided to foreign professionals” can be applied during the entire employment period. However, the “tax incentives for foreign special professionals” are restricted to the applicable year and with threshold of salary income. Although the content of “tax incentives for foreign special professionals” and “tax preferences provided to foreign professionals” are different, as long as a foreign special professional meets the requirements of these two tax benefits, he/she can apply for both tax benefits simultaneously. In other words, if a qualified foreign special professional also meets the requirements of “tax preferences provided to foreign professionals”, his/her taxable salary income can be calculated in accordance with the “The Scope of Application for Tax Preferences Provided to Foreign Professionals”, and his/her taxable salary may be also calculated based on the Act for the Recruitment and Employment of Foreign Professionals.

“The day of employment engaged in the professional work” is the first day of the employment period of the foreign special professional employment (work) permit document issued by the Ministry of Labor or by the Ministry of Education, while “the day of obtaining the Employment Gold Card” is the “date of issue” shown on the Employment 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.

Tax Incentives Example

  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.

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