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FAQ - Salary, Taxes and Rights

  • Q1: What is salary and wages income?

    1. Salary and wages is one kind of remunerations which means all income derived in respect of employment exercised received for services rendered or work performed, including salaries, remunerations, wages, allowances, annuities, endowments, bonuses and/or any other similar subsidies or compensations. Only for non-R.O.C. residents staying in the R.O.C. for less than 90 days within a taxable year, whose remunerations received from foreign employers will not be deemed as R.O.C. source salary/wages income.
    2. From 2019, each person receiving salaries and wages may claim a special deduction for salary and wages up to a maximum of NT$200,000 or the necessary expenses directly related to performing duties or doing work and borne by the recipient to be deducted from his or her salaries and wages. For filing the necessary expenses deducted from salaries and wages, please submit the “ 2019 Application for Necessary Expenses Deducted from Salaries and Wages” and other supporting documents when declaring.
    Special deduction for salary and wages shall not apply to the income from salary and wages calculated in accordance with necessary expenses deducted from salaries and wages when calculating the tax payable in accordance with Article 15 and calculating the net consolidated income in accordance with Article 17 of the Income Tax Act.
    3. From 2018, if a foreign special professional meets certain requirements, referring to Article 20 of the Act for the Recruitment and Employment of Foreign Professionals and Regulations Governing Reduction and Exemption of Income Tax of Foreign Special Professionals, during the first five years starting from the year when he or she for the first time has resided in the R.O.C. for a full 183 days of the year and has had an annual salary income of over NT$ 3 million, one half of the amount of the salary income exceeding NT$ 3 million of each such year may be excluded from the gross income. Overseas income is excluded from the income basic tax. Please submit the “Application for Exemption from Income Tax for Foreign Special Professionals” and other supporting documents when declaring.

  • Q2: What is included in average monthly salary?

    Average monthly salaries include both "regular" and "non-regular" income. Regular income includes basic pay, professional allowance, monthly-based bonuses and fixed compensations or voucher values for rent, utilities, transportation, rooms and boarding. Non-regular income includes overtime payments, non-monthly-based bonuses or allowances such as for the three main national holidays, special bonus for leaves, and meal compensations.

  • Q3: What are the salary restrictions for foreign professional workers?

    The salary shall be no less than the average monthly wage of at least NT$47,971 as newly published by the Ministry of Labor for professional  specialized or technical jobs (type A) in industrial and service businesses. However, this salary restriction does not apply to foreigners under the following circumstances:
    1. Foreigners who are hired by a public or registered private college or above or an academic research institution to work as a full time research project assistant and earn no less than the amount specified on the National Science Council's reference table or salaries for full-time research project assistants each month.

     

    2. Starting in the 100-academic year, the average monthly salary is above NT$37,619 for those who obtain the employment permit extension.


    3. Foreign students or overseas Chinese students who have acquired a bachelor's degree or higher from a public or registered private college in Taiwan have been subject to the scheme of New Scoring Criteria since July 2014.

     

    4. Foreigners employed in the jobs specified in Article 46.1.1 to 46.1.6 of the Employment Services Act whose foreign spouses with whom they live are employed in part-time specialized or technical work, shall not receive hourly wages or remunerations lower than NT$200 per hour.
     

  • Q4: Can the average monthly salary per person for foreigners hired to perform specialized technical jobs be below NT$47971?

    The average monthly salary per person for foreigners hired to perform specialized technical jobs may not be below NT$47,971. However, this rule is exempted under any one of the following circumstances:
    1. The monthly remuneration received by full-time research assistants hired by a public or registered private college or above or an academic research institution matches or exceeds the amount specified for a worker with a bachelor's or master's degree and one year tenure in the Remuneration Table for Full-Time Research Assistants in NSC Research Project Funding Program.
    2. Starting in the 100-academic year, the average monthly salary is above NT$37,619 for those who obtain the employment permit extension.
    3. Those who meet the qualifications under the Points System as mentioned in Paragraph 1 of Article 5-1 of the "Qualifications and Criteria Standards for foreigners undertaking the jobs specified under Article 46.1.1 to 46.1.6 of the Employment Services Act."

    4. Foreigners employed in the jobs specified in Article 46.1.1 to 46.1.6 of the Employment Services Act whose foreign spouses with whom they live are employed in part-time specialized or technical work, shall not receive hourly wages or remunerations lower than NT$200 per hour

    Relevant information can be inquired from the EZ Work Taiwan website (https://ezworktaiwan.wda.gov.tw/).

  • Q5: When are foreigners required to file their income tax returns in the Republic of China (R.O.C.)?

    As the duration within a taxable year (from January 1st to December 31st) that foreigners stay in the R.O.C. varies, the following three points can be used as a guide for foreigners' reference to file their income tax returns:

    1.  For foreigners staying in the R.O.C. for less than 90 days, the income derived from sources in the R.O.C. shall be withheld according to the withholding tax rate and paid at the respective sources. The taxpayer need not file an income tax return. However, if one has income gained from stock option exercising, etc., he/she should declare and pay tax prior to departure. For those who remain in the R.O.C. through May 31st of the current year, they are supposed to file their last year's income before the said time.

    2. For foreigners who stay in the R.O.C. over 90 days, but less than 183 days, the income derived from sources in the R.O.C. shall be withheld according to the withholding tax rate and paid at the respective sources. However, incomes derived from overseas earned through providing services in the R.O.C. will have to be reported prior to departure. For those who remain in the R.O.C. through May 31st of the current year, they are supposed to file their last year's income before the said time.

    3. Foreigners staying in the R.O.C. 183 days or more in one calendar year will be required to file their annual income for the previous year to the Tax Bureau and pay the corresponding taxes during the period from May 1st to May 31st of the current year. However, those leaving the country in the middle of the year will be required to file income earned in that year prior to departure.

    The mandatory time of filing individual income tax returns for the preceding fiscal year is from May 1st to May 31st  (if May 31st falls on Saturday, Sunday, national holiday or any other holiday, the due day extends to the next workday).

  • Q6: What would happen if a foreigner fails to file his/her income tax return?

    If a foreigner has source income from R.O.C. but fails to file income tax return, such taxes will be charged a penalty rate of a maximum of three times the amount of the tax payable and the tax authorities will inform the National Immigration Agency to deny exit clearance to the foreigner in accordance with the stipulation of Paragraph 2, Article 72 of the Income Tax Act of the R.O.C. But if a taxpayer voluntarily files a supplementary tax declaration with the tax collection authorities and makes supplementary payment covering the tax amount which he/she has failed to declare, as long as it is neither a case brought about by an informant, nor a case under investigation by an investigator appointed by the tax collection authorities or the Ministry of Finance, the taxpayer shall pay the daily interest, and may be remitted from above-mentioned penalty.

  • Q7: Where should foreigners file their income tax returns?

    Foreigners should file their income tax returns and pay their corresponding taxes to the district National Taxation Bureau (based on the address on their Alien Resident Certificate, hereafter shortened as ARC). Foreigners in Taipei or Kaohsiung City are required to file income tax returns and pay corresponding taxes to the head office of the National Taxation Bureau of Taipei or Kaohsiung. Foreigners living in the rest of the country are required to file tax returns at the responsible branch or office of the National Taxation Bureau.

  • Q8: If foreign corporations assign foreign workers to implement the contracts of business and technological cooperation, shall the salaries subject to R.O.C.’s individual income tax?

    Based on Item 3, Paragraph 1, Article 8 of the Income Tax Act of the R.O.C., if an alien stays in the Republic of China for more than 90 days during a taxable year, the remuneration he/she receives from his/her employer(s) outside of the R.O.C. for services rendered within the territory of the R.O.C. shall be considered as R.O.C.-sourced income and he/she should file income tax return.

  • Q9: How do foreigners, who stay in the R.O.C. for more than 90 days in the taxable year, file their income tax returns for income derived from abroad employers for service rendered in the R.O.C.?

    Taxpayers shall file income tax returns for remuneration paid by their employers outside the R.O.C for services rendered in the R.O.C. during their stay.

    Taxpayers shall also submit relevant certificates of earnings issued by tax authorities, a Certified Public Accountant (CPA), or a notary public. Furthermore, a photocopy of the license of the CPA who issues the certificate ought to be submitted to the tax authorities for review. The above-mentioned remunerations should be calculated at the average foreign currency exchange rate.

  • Q10: What is the difference between “residents of the Republic of China” and “non-residents of the Republic of China ” regarding the Income Tax Act of the R.O.C.?

    The following two categories of individuals are regarded as "residents of the Republic of China":

    1. An individual who has registered residence with the Household Registration Office and meets one of the following requirements:

       (1) Who stays in the R.O.C. for 31 days or more in a calendar year.
       (2) Who stays in the R.O.C. for 1 day to 30 days in a calendar year, and is the center of vital interests for personal and economic relations is in the R.O.C.
    To meet the criteria "the center of vital interests for personal and economic relations", family and social relations, the occupations, the political, cultural or other activities, the place of effective business and property management, etc., the following reference principles should be considered:

    a.Who is eligible for social welfare, such as national health insurance, labor insurance, national pension insurance or farmer insurance, etc.

    b.Who has spouse or children under 20 years old living in the R.O.C.

    c.Who runs businesses, provides professional services, administers properties, renders services, or is appointed to be the director, supervisor, or manager in the R.O.C.

    d.Other proof of being the center of vital interest for personal and economic relations is in the R.O.C.

     

    2. An individual who has no Household Registration in the R.O.C. but stays for 183 days or longer is regarded as an R.O.C. resident.

     

    Individuals not falling into the above-mentioned categories are regarded as "non-residents of the Republic of China".

  • Q11: How shall R.O.C. residents and non-R.O.C. residents file their annual income tax returns?

    1. Residents of the Republic of China

    R.O.C. residents deriving income from R.O.C. sources, including remunerations paid by employers outside the R.O.C. for services rendered in the R.O.C., must file their income tax returns before departure or file annual income tax returns for the previous year from May 1st to May 31st in the current year.

    Income tax returns must be submitted to the tax authorities. Their income tax shall be declared and assessed by a progressive rate based on net consolidated taxable income, which shall be the annual gross consolidated income minus the exemptions, deductions and basic living expense difference.

     

    2. Non-residents of the Republic of China

    For non-residents of the R.O.C., the income derived from sources in the R.O.C. shall be withheld according to the withholding rate and paid at the respective sources. However, if non-residents of the R.O.C. have income which not subject to withholding, such as income gained from exercising stock options, they should declare and pay tax prior to departure. In addition, a non-resident of the R.O.C. staying in the R.O.C. over 90 days in a taxable year and whose remuneration paid by employers outside the R.O.C. for services rendered in the R.O.C. need to file income tax return in accordance with the proper withholding tax rate.

  • Q12: What documents or certificates should be submitted to claim an exemption for a spouse or dependents? May a foreign resident of R.O.C. claim exemption for a spouse or dependents that do not live in the R.O.C?

    To claim exemptions for a spouse or dependents, a foreign resident of R.O.C. should submit the following documents:
    1. Spouse:
    (1) The spouse's personal data-such as a photocopy of passport or a photocopy of ARC.
    (2) Documents stating their relationship - such as a photocopy of marriage certificate or notarized documents issued by local or foreign government agencies.
    (3) Living certificates-such as notarized documents, household registration certificate or other documents that prove the spouse was living during the related fiscal year.
    2. Lineal ascendants who are having attained 60 years old or under 60 years old but incapable of earning a livelihood by themselves:
    (1) The lineal ascendants' personal data - such as a photocopy of passport or a photocopy of ARC.
    (2) Documents stating their relationship-such as birth certificate, household registration certificate or notarized documents issued by local or foreign government agencies.
    (3) Proof of support-such as remittance certificate or notarized documents.
    (4) Living certificates-such as notarized documents, household registration certificate or other documents that prove the lineal ascendants were living during the related fiscal year.
    (5) Ascendants who are under 60 years old but incapable of earning a livelihood by themselves should submit certificates issued by public hospitals or local government agencies' notarized documents.
    3. Children or siblings who are minors or having attained the age of majority and still attending school, or physically or mentally disabled:
    (1) The children's or siblings' personal data-such as a photocopy of passport or a photocopy of ARC.
    (2) Relationship documents-such as birth certificate, household registration certificate or notarized documents issued by local or foreign government agencies.
    (3) Proof of support-such as remittance certificate or notarized documents.
    (4) If the taxpayer's children or siblings are having attained the age of majority, items for at least one of the following categories also need to be submitted:
    A. Certificate of being at school: A certificate issued by colleges or universities which have been approved by the Ministry of Education of the R.O.C., or a photocopy of a student's identity card, or a photocopy of a diploma of graduation, or a receipt of tuition being paid.
    B. Certificate of being mentally or physically disabled: A certificate from a recognized diagnostician of the R.O.C. or a photocopy of a Registered Handicapped Person's Certificate of the R.O.C.
    C. Certificate of being incapable of earning a livelihood: Documents certified by foreign or local national/public hospitals or governments.
    (5) Living certificates-such as notarized documents, household registration certificate or other documents that prove the children or siblings were living during the related fiscal year.
    4. Other dependents who are under minors or having attained the age of majority but incapable of earning a livelihood by themselves due to school attendance, physical (mental) disability, or other specified reasons, receiving financial support from the taxpayer living in the same residence within the meaning of Sub-Paragraph 4, Article 1114, or Sub-Paragraph 3, Article 1123, of the Civil Code:
    (1) Other dependent's personal data-such as a photocopy of passport or a photocopy of ARC.
    (2) Documents stating their relationship-such as birth certificate, household registration certificate or notarized documents issued by local or foreign government agencies.
    (3) Proof of the support-such as remittance certificates or notarized documents.
    (4) If the dependents are having attained the age of majority, items for at least one of the following categories also need to be submitted:
    A. Certificate of being at school: A certificate issued by colleges or universities which have been approved by the Ministry of Education of the R.O.C., or a photocopy of a student's identity card, or a photocopy of a diploma of graduation, or a receipt of tuition being paid.
    B. Certificate of being mentally or physically disabled: A certificate from a recognized diagnostician of the R.O.C. or a photocopy of a Registered Handicapped Person's Certificate of the R.O.C.
    C. Certificate of being incapable of earning a livelihood: Documents certified by foreign or local national/public hospitals or governments.
    (5) Living certificates - such as notarized documents, household registration certificate or other documents that prove the other dependents were living during the related fiscal year.
    (6) Household registration certificate or notarized document which shows they are actually living together. A notarized declaration certifying that he/she is supported by the taxpayer or other appropriate documentation may be requested.
    Only foreign residents of the R.O.C. may claim exemptions for a spouse or dependents (excluding other dependents, i.e. aunt, uncle, cousin, grandchild, nephew or niece) who are not in the R.O.C., if they submit the above-mentioned required certificates. 

  • Q13: What exemptions and deductions can a foreign resident claim when calculating his/her income tax?

    The income tax for a resident of the R.O.C. shall be computed by a progressive rate on his/her net consolidated income which shall be the annual gross consolidated income minus the exemptions, deductions and basic living expense difference. The exemptions and deductions for the fiscal year of 2021 are stated as follows:
    1. Exemptions: There is an NT$88,000 exemption for each person (including taxpayer, his/her spouse and dependents). In case the taxpayer, his/her spouse and their lineal ascendants have attained 70 years of age, the exemption is NT$132,000.
    2. Deductions: A foreign resident can claim either standard deduction or itemized deductions and special deductions. 
    (1) Standard deduction: There is a NT$120,000 deduction for a single person in the filing of income tax return and an NT$240,000 deduction for a married couple filing a joint return.
    (2) Itemized deductions (original receipts or documents should be attached according to the tax law). There are 6 items included:
    a. Donation: The deduction shall not exceed 20 percent of the taxpayer's consolidated gross income. However, donations made to national defense, military or to the government and ancients are fully deductible.
    b. Personal insurance premiums: The insurance premiums for life insurance of the taxpayer, his/her spouse and lineal dependents could be claimed. Both the insured and the applicant shall file the return jointly(National Health Insurance is excluded), and the deduction shall not exceed NT$24,000 for each insured per year. (No limitation for National Health Insurance payments.)
    c. Medical and maternity expenses: Deductions can be claimed following the related law or regulations.
    d. Losses from disaster: Deductions can be claimed following the stipulated law or regulations.
    e. Mortgage Interest paid on a loan for an owner-occupied residence: Under the conditions that the residential house entitled for the deduction is to be located within the territory of the R.O.C., and that the deduction shall not exceed NT$300,000 for only one house each year. However, in the case that the taxpayer also claims his/her interests as a special deduction for savings and investment, such special deduction shall be subtracted from the above-mentioned interests.
    f. Rental expense: Rental paid for houses in the R.O.C., purely for the taxpayer, his /her spouse and lineal dependents residence, rather than those used by business for profit is deductible. The maximum deduction for rental expense is NT$120,000 for each annual tax return. There is no deduction for individuals who have claimed “Mortgage interest paid on a loan for an owner-occupied residence”.
     (3) Special deductions: 
    a. Losses from property transactions: Deductions shall not exceed the gains from property transaction filed for the same year. 
    b. Special deductions for savings and investment: Deductions for each household shall not exceed NT$270,000 per year.
    c. Special deduction for disability: Deduction for each disabled person (R.O.C. authority registration required) is NT$200,000 in filing the tax return.
    d. Special deduction for tuition: For each annual return, the maximum deduction for tuition fee is NT$25,000 for each child attending college or university. 
    e. Special Deduction for Pre-School Children: Starting from 2012, for a taxpayer who has children under or equal to 5 years of age, and his/her circumstances is in compliance with applicable laws, the amount of the deduction for pre-school children is NT$120,000 per child per year.
    f. Special deduction for long-term care: Starting from 2019, for a taxpayer, his /her spouse, or dependent(s) whose circumstances is in compliance with applicable laws, the amount of the deduction is NT$120,000 per person per year.
    In the case that a foreign resident of the R.O.C. departed and did not return during a taxable year, the amounts for exemptions, standard deduction and basic living expense shall be calculated in proportion to the length of stay in the R.O.C. during that year.
    3. Basic Living Expense Difference: The total basic living expense shall be calculated in accordance with the expense of basic living for each person, NT$192,000 announced by Central Authority in 2021, multiplied by the number of taxpayer, spouse, and dependents in one tax return. If the amount of basic living expense is higher than the sum of Exemption, Standard deduction (or Itemized deduction), and Special deduction for savings and investment, disability, tuition, Pre-School Children and long-term care, the difference can be used as an additional deduction from the gross consolidated income.
    The table of progressive tax rates for the year of 2021 (Unit: NT$):

  • Q14: If a R.O.C. citizen is married to a foreigner, where should they file their income tax return?

    1. When they file their income tax return jointly, if the taxpayer is a R.O.C. citizen, he/she should file to the National Taxation Bureau where he/she is domiciled. And if the taxpayer is foreign resident, he/she should file to the National Taxation Bureau based on the address of his/her ARC. Those foreign taxpayers residing in Taipei City should file tax to the Foreign Taxpayers' Section, National Taxation Bureau of Taipei at No. 2, Sec. 1, Zhonghua Road, Taipei City.

    2. For any non-resident foreigner whose spouse is a R.O.C. citizen and having R.O.C. source income, he/she may choose to file income tax return jointly with the spouse or file his/her own income at the tax rate of non-residents. If the non-resident foreigner chooses to file separately, his/her income should not be included in the consolidated income of the R.O.C. citizen's tax return. Also, the tax withheld and the tax due paid by non-resident can not be credited by the R.O.C. citizen spouse and no exemption, deduction and basic living expense can be claimed when calculating the R.O.C. citizen spouse's tax due.

  • Q15: Should a couple file their income tax returns jointly? If a couple gets married or divorced during the interim of the year, how should they file their taxes?

    1. Article 15 of the Income Tax Act stipulates that the income of a married couple must be filed jointly except when the married couple could hardly maintain their common living, and have not lived together for more than 6 months conforming to Paragraph 2, Article 1010 of the Civil Code, or do not continue their cohabitation for more than 6 months, or one of the married couple have obtained an ordinary protection order conforming to Article 1089-1 of the Civil Code. However, the tax due on the spouse's salary or categorized income may be chosen to be calculated separately. In the case of husband and wife living in different areas, either the husband or the wife can be the taxpayer and file the income tax return jointly at his/her district National Taxation Bureau.

    2. For any non-resident having R.O.C. source income and whose spouse is a resident of the R.O.C., the non-resident may choose to file income tax return jointly with the spouse or file his/her own income at the tax rate of non-R.O.C. residents. If the non-resident chooses to file separately, his/her income should not be included in the consolidated income of the resident spouse. Also, the tax withheld and the tax due paid by non-R.O.C. resident cannot be credited by the resident spouse and no exemption and deduction can be claimed when calculating the resident spouse's tax due.

    3. In the case that a couple get married or divorced during the interim of the year, they may choose to file income tax returns separately only for that related fiscal year. Presentation of a certificate of marriage or divorce is required at the time of filing. Further, double claiming is not permitted; the couple should determine which party may claim the related dependent's exemption(s); otherwise, such exemptions should be claimed by the person who actually provides financial support.

    Except three different situations mentioned above, a foreign resident of the R.O.C. should file the gross consolidated incomes of him/herself, his/her spouse and his/her dependents jointly.

  • Q16: What are the withholding tax rates for ”non-residents of the R.O.C.”?

    1. The withholding tax rate on the income which falls within the withholding scope shall be as follows:

    (1) The withholding tax rate on dividend distributed by a company, profit distributed by a cooperative, earnings payable by a profit-seeking enterprise organized as a partnership to its partners each year, or earnings from a profit-seeking enterprise organized as a sole proprietorship each year is 21%.

    (2) The withholding tax rate on salaries is 18%. In the case that the monthly salaries in full amount are equal to or lower than one and a half times of the monthly baseline salary as assessed by the Executive Yuan, the withholding tax rate is 6%.

    (3) The withholding tax rate on commissions is 20%.

    (4) The withholding tax rate on interest is 20%. However, the kinds of interest listed below shall be withheld in accordance with the associated regulations:

    a. The portion of the pecuniary amount realized by short-term commercial papers at their maturity in excess of the selling price at their initial issuance is deemed as income from interest and shall be withheld by 15%.

    b. The interest distributed from beneficiary securities or asset-backed securities issued in accordance with the Financial Asset Securitization Act or the Real Estate Securitization Act shall be withheld by 15%.

    c. The interest accrued from government bonds, corporate bonds and financial bonds shall be withheld by 15%.

    d. The interest derived from repo (RP/RS) trade whereby an individual purchases short-term commercial papers or securities as listed in the preceding items a., b. or c. shall be withheld by 15% of the net amount of the sale price at maturity in excess of the original purchase price.

    (5) The withholding tax rate on rentals is 20%.

    (6) The withholding tax rate on royalties is 20%.

    (7) The withholding tax rate on cash awards or payments given in contests or prizes won by chance is 20%. However, taxation is exempted when the prize is not more than NT$5,000 from lottery tickets or uniform invoices issued under the auspices of the government.

    (8) The withholding tax rate on the remuneration to a professional practice is 20%.

    (9) After deducting any regulated exemption, retirement payments or pensions shall be withheld at the rate of 18%.

    (10) The withholding tax rate on payment of reward for information or accusation is 20%.

    2. Additionally, income which does not fall within the withholding scope shall be filed and taxed in accordance with the following:

    (1) Income gained from exercising stock option shall be filed and taxed at the rate of 20%.

    (2) In the case of income from the transfer of tax-differed stocks, the par value of the stocks shall be deemed as the taxable income of the year of transfer. If the actual transfer price of such stocks at the time of sale or the market value of such stocks at the time of bestowal or distribution of the estate is lower than the par value, the actual transfer price or the market value shall be deemed the taxable income. Such income shall be filed and taxed at the rate of 18% or 21% in accordance with the different category of income.

    (3) Miscellaneous income shall be filed and taxed at the rate of 20%.

    (4) Where a trust deed is set up by a profit-seeking enterprise, the beneficiary shall be taxed at the rate of 20% on the value of his or her entitlement to the trust in the year of setting up, and a newly replaced beneficiary shall be taxed in the year of replacement. Furthermore, the beneficiaries shall be taxed at the rate of 20% on the increased part of the value of their entitlements when the enterprise makes the addition of an increment to the trust fund.

    (5) Non residents who stay in the R.O.C. over 90 days within a taxable year, remunerations paid by employers outside the R.O.C. for services rendered in the R.O.C. shall be filed and taxed at the rate of 18%.

    (6)Deriving income from a property transaction other than that specified in Q24 Individual House and Land Transactions Income or income from self-undertaking in farming, fishing, animal husbandry, forestry, mining, or other income as described in Article 14 of the Income Tax Act, shall file and pay the tax in accordance with the withholding rate of 20% of the income.

  • Q17: How can a foreign taxpayer make a payment before the deadline stipulated by the Income Tax Act?

    1. If there is a tax balance due, a foreign taxpayer can make his/her payment through the following 4 ways:
    a. By cash or check: A foreign taxpayer can fill in a form of payment of individual income tax or print out a payment slip from the e-Filing program or via the website at https://www.etax.nat.gov.tw and pay income tax by cash or check at any commissioned bank, except the post office. Payment may also be made in cash at convenience stores, such as, 7-Eleven, Family Mart, Hi-Life, and OK Mart if the tax due is no more than NT$30,000.
    b. By financial chip card: Tax payment also can be made by using a financial chip card (ATM card) at https://paytax.nat.gov.tw (details are available on that website) or following the procedure in e-Filing program.
    c. By credit card: To encourage e-Filing, a taxpayer who files his/her tax return online is entitled to pay taxes by his/her spouses' (Taiwanese spouses also apply) credit cards (issued by domestic financial institutions which sign up the credit card payment services only).
    d. By taxpayer's savings account: Taxpayer can do e-Filing with Aliens Citizen Digital Certificate, Financial CA or NHI card with pin and pay tax online by remitting payment synchronously from taxpayer's savings account.
    2. Late payments can be made at convenience stores or by the financial chip card (ATM card) within 3 days after the due date without any surcharges. Otherwise, late payment cases can only be made at commissioned banks authorized by the R.O.C. government treasury, except the post office.

  • Q18: How does a foreign taxpayer apply for a tax refund? What can he/she do if he or she is not able to collect the refund check in person?

    After the National Taxation Bureau (NTB) examines the income tax return as per the general examination procedure and determines he/she is due a refund, he/she shall receive a notification of refund.


    The taxpayer may also receive his/her refund via bank account. Deposit-able accounts are limited to transferable NT-dollar-accounts of the specified contractual banks with the Financial Information Service Co., Ltd or Taiwan Post Co., Ltd. The account shall belong to the taxpayer, or to the taxpayer's spouse or to a dependent in the case of a joint-filing, and shall have been opened with the title of an R.O.C. ID No. or an ARC No.


    In the case that the NTB is unable to deposit such tax refund into the appointed bank account, the NTB will mail a notice to the taxpayer and issue a refund check instead. If a taxpayer cannot collect the refund check in person, or if he/she has left the country and has no valid bank account able to be deposited, he/she will then need to fill out an application to appoint an agent to collect the refund check or applying for a deposit-able transferring check.


    Photocopy of the page in the taxpayer's passport bearing his/her signature should be attached for reference in the aforementioned cases.

     

  • Q19: Can a foreign taxpayer’s native country’s income tax be credited to the R.O.C. income tax? Can his/her R.O.C income tax be credited to his/her native country’s income tax?

    The foreign taxpayer's native country's income tax cannot be credited to the R.O.C. income tax, as the R.O.C. Income Tax Act stipulates.

    Whether the R.O.C. income tax can be credited to the native country's income tax, the foreign taxpayer should inquire tax authorities in his/her native country to make this determination.

  • Q20: How is a foreign taxpayer’s Individual Income Tax Certificate applied if it is necessary for his/her native country’s income tax purposes?

    When a foreign taxpayer applies for an Individual Income Tax Certificate, he/she should show his/her passport or ARC to the National Taxation Bureau.

    If the foreign taxpayer cannot apply in person, his/her agent is required to show a proxy statement, affixed with the same signature as shown on the taxpayer's passport, and a copy of the said signature from the same passport which bears personal details. The ID card of the agent shall also be presented at the time of application.

  • Q21: What does “Taxpayer ID No.” mean? What is the issuing authority and how are the numbers compiled?
    1. 1. Since January 2nd, 2007
      1. (1) The Taiwan Area Resident Certificates are issued by the National Immigration Agency and bear the "Taxpayer ID No." for Hong Kong and Macau citizens, PRC nationals, and overseas Chinese.
      2. (2) ARCs are issued by the National Immigration Agency. They bear the "Taxpayer ID No." for foreign taxpayers who reside in Taiwan.
      3. (3) For foreigners or nationals without registered residence in Taiwan, they can apply for a "Taxpayer ID No." in person or by proxy to the National Immigration Agency by submitting their passports; Hong Kong and Macau citizens, PRC nationals, and Overseas Chinese can apply for the "Record of ID No. in the Republic of China" to the National Immigration Agency.
         
    2. 2. The "Taxpayer ID No." consists of two letters and eight numerals. The first letter is the area code; the second letter is compiled according to sex and issuing authorities, i.e., AB, CD; the third to ninth numerals are serial numbers; and the tenth number is the check number. The "ID No." is the code number printed on the ARC. For instance:
      1. (1) Mr. Robert W. Davison holds an ARC. The ID No. on his certificate is "AC12345678". This means his "Taxpayer ID No." is "AC12345678".
      2. (2) Ms. Carol Lee holds an ARC. The ID No. on her certificate is "HD12345678". This means her "Taxpayer ID No." is "HD12345678".

    National Immigration Agency, Ministry of the Interior released new ID No. since Jan. 2, 2021. The replacement period is from January 2, 2021 to December 31 2030, and the original ID No. will be invalidated completely from January 1, 2031.

  • Q22: Who have the obligation of filing an individual income basic tax return?

    1. An individual shall file an individual income basic tax return in accordance with the Income Basic Tax Act unless his/her circumstances do apply to any one or more of the conditions listed below:

    A. Non-resident of the R.O.C. (staying less than 183 days within a taxable year in the R.O.C.).

    B. An individual who does not apply for any investment tax credits in accordance with the laws and does not have any amount within the scope of the provisions of any of the subparagraphs of Paragraph 1 of Article 12 of the Income Basic Tax Act in his/ her annual income tax return or current income tax return.

    C. An individual whose basic income as calculated in accordance with Paragraph 1 of Article 12 of the Income Basic Tax Act is less than NT$6,700,000..

    2. An individual whose circumstances do not apply to any one or more of the conditions mentioned above shall file an individual income basic tax return.

  • Q23: What kinds of items included in the calculation of the amount of basic income?

    The following items are included in the calculation of the amount of basic income:
    1. Net taxable income: The net taxable income is calculated in accordance with the Income Tax Act (please refer to the individual income tax return).
    2. Overseas income: Income, which is derived from sources outside the R.O.C. and is excluded from gross consolidated income, as well as income which is exempted in accordance with Paragraph 1, Article 28 of the Act Governing Relations with Hong Kong and Macau. However, if the aggregate of the two aforementioned sources of income in a filing unit is less than NT$1,000,000, it may be excluded from the basic income; otherwise, it shall be filed in the full amount of the aggregate income mentioned above.
    3. Life and annuity insurance payments: Insurance payments received by the beneficiary, on condition that the beneficiary and the proposer are not the same person and that the life insurance policy and annuities are contracted after this Act came into force. However, in the case of payment made upon the death of the insured person, the part of which aggregate of payments made in a filing unit is equal to or less than NT$33,300,000 may be excluded from the basic income in a calendar year.
    4. Income derived from transactions of securities:
    (1)Share certificates, certificates of entitlement to new shares, stock share payment certificates and documents of title to any of the securities issued or placed privately by a company that is not listed in a stock exchange or traded in the over-the-counter market.
    (2)Beneficiary certificates of privately-placed securities investment trust funds.
    5. Non-cash donations or contributions: The amount of non-cash donations or contributions deducted from the gross consolidated income of the individual income tax return.
    6. Total amount of dividends and earnings which the taxpayer chooses to compute separately from his/her gross income with the single tax rate.

  • Q24: What are the Individual House and Land Transactions Income Tax? Who should file Individual House and Land Transactions Income?

    1. An individual, who has income or loss derived from transactions of house, land, the house utilization right, presale house and shares or capital that meet certain conditions listed below, regardless of the tax amount, shall file an individual house and land transactions income tax return in accordance with the Income Tax Act, unless he/she falls into any case of conditions prescribed in 2 . :
    (1) House, the share of land associated with the house, or any land for which a construction permit may lawfully be issued acquired on or after January 1, 2016. The definition of the house here shall exclude the farmhouses and agricultural facilities built in accordance with the Agriculture Development Act.
    (2) The house utilization right by creation of superficies or presale house with its building location acquired on or after January 1, 2016.
    (3) An individual directly or indirectly holding more than half of the total number of shares or the total amount of capital of an enterprise within or outside the Republic of 11 China, where at least 50% of the value of such shares or capital is constituted by house and land within the territory of the Republic of China.
    2. Under any of the following circumstances, the transactions of house and land will be exempt from the Individual House and Land Transactions Income Tax:
    (1) Land complied with the provisions of Article 37 and Article 38-1 of the Agricultural Development Act allowing for non-taxable status of Land Value Increment Tax.
    (2) Land or land improvements expropriated by the government or had been acquired in a negotiable price before the expropriation.
    (3) Transfer of land that has been designated as reserved land for public facilities under Urban Planning Law before expropriation. 

  • Q25: How are the amount of the house and land transactions income or losses and taxable income to be calculated?

    1. The house and land transaction income or losses amount =The transaction price – deductible costs and expenses.
    2. Taxable income= The house and land transaction income –The amount of losses derived from house and land transactions within 3 years from the day of the transaction – The total amount of land value increment calculated in accordance with the assessed present value provided in Paragraph 1, Article 30 of the Land Tax Act
    3. Deductible costs and expenses:
    (1) Deductible costs and improvement expenses: 
    a. The deductible costs for house and land acquired at a price with proper documents of evidence shall be the original costs; whereas, the deductible costs for house and land acquired through inheritance or bestowal shall be the current value of the house and the assessed present value of land at time of inheritance or bestowal, which have been duly adjusted with the price index announced by the government. The deductible costs for house and land acquired through bestowal from spouse shall be measured by the spouse(giver)'s original acquisition costs, respectively, based on the three categories (purchase from third party, inheritance, or bestowal) mentioned above.
    b. Other expenditures with proper documents of evidence:
      All expenses necessary for the house and land to attain a feasible status (e.g. deed tax, stamp tax, scrivener fee, surcharge, notarization fee, and brokerage fee. etc.), the mortgage interest paid on loans from financial institutions before the house and land transfer registration is completed, and any expense paid for the addition, improvements or maintenance of the house, which can either add to the value or function of the house and will not impair within 2 years.
    c. The land improvement expenses authorized by local tax collection authorities in accordance with Article 51 of The Enforcement Rules of the Land Tax Act refer to the “land improvement expenses” listed on the tax bill or the tax exemption certificate of the Land Value Increment Tax.
    d. The calculation of the transaction cost of shares or capital that meet certain conditions can be done by specific identification methods provided that the original acquisition costs can be presented or can be calculated with the weighted average of the shares or capital owned by the invested domestic and foreign profit-seeking enterprise at the time of the transaction.
    (2) Deductible expenses occurred from transfer:
    a. All expenses necessary for ownership transfer of the house and land, such as the brokerage fee, advertising expense, cleaning fee, and cartage can be deducted from the transaction income. Otherwise, if no document of evidence is provided, or the total amount listed on the documents of evidence is not more than 3% of the transaction price, the deductible expenses may be assessed as 3% of the transaction price, and such expense shall not exceed NT$300,000.
    b. The necessary expenses for transactions of shares or capital that meet certain conditions include securities transaction tax, handling fees and other relevant necessary expenses.

  • Q26: What is the tax rate on the income of house and land transaction?

    1. Residents of the R.O.C.:

     

    2.Non-Residents of the R.O.C.: 

  • Q27: How to file the house and land transactions income tax? What documents shall be required for filing?

    1.The taxpayer shall on his/her own initiative file the tax return and attach relevant documents to the tax collection authority within 30 days from the following day of the day on which the house, land, the house utilization right, presale house and shares or capital that meet certain conditions transaction is completed.The above-mentioned income shall not be included in the gross consolidated income when he/she files his/her individual consolidated income tax return.
    2.The taxpayer shall file the individual house and land transaction income tax return with the competent tax collection authority in the following order:
    (1)The National Taxation Bureau where the registered household is located at the time of declaration.
    (2)The National Taxation Bureau where the residence address given on the ARC is located at the time of declaration. (An alien who resides in Taipei or Kaohsiung City should file his/her tax return at the Foreign Taxpayers Section, National Taxation Bureau of Taipei/Kaohsiung, Ministry of Finance.)
    (3)The National Taxation Bureau where the house, land, house utilization right, presale house with its building location is located, provided that the taxpayer has no household registration or registered place of residence. (An alien who purchases or sells house and land located in Taipei or Kaohsiung City should file his/her tax return at the Foreign Taxpayers Section, National Taxation Bureau of Taipei/Kaohsiung, Ministry of Finance.)
    (4)The National Taxation Bureau where the R.O.C. central government is located (that is, National Taxation Bureau of Taipei, Ministry of Finance).
    3. When filing the individual house and land transactions incom tax return, he/she should submitted the following documents:
    (1)The Application Form of the Individual House and Land Transactions Income Tax Return with the taxpayer's signature should be attached. If an agent is appointed by the taxpayer, the agent shall sign his/her signature on the form, and a photocopy of the ID card or ARC of the agent should be attached. If the taxpayer is a minor or is under guardianship, the legal representative or guardian should sign the form and attach photocopies of their ID card and other supporting documents.
    (2) If any tax is payable, the payment receipt shall be attached as well.
    (3)Photocopies of transaction contracts (including purchase and sale) of house, land, the house utilization right, presale house. Documents which can provide evidence of the transaction costs and expenses necessary, and other relevant supplementary documents.
    (4)For transactions of shares or capital that meet certain condi-tions, the following documents shall be submitted (if the documents were written in a foreign language, a Chinese translation should be attached):
    a. Transaction contracts (including purchase and sale) of shares or capital, supporting documents related to costs and necessary expenses, etc.
    b. The registration information of the shares or capital amount, the list of changes in equity, and the organization charts of the affiliated enterprises (including the equity) of the invested domestic and foreign profit-seeking enterprise after the transaction and within one year before the date of the transaction.
    c. The latest financial report of the invested domestic and foreign profit-seeking enterprise in the transaction, which have been audited by a CPA (the financial statements should be attached if there is no such certified financial report), and the latest financial statements of the enterprises, under the control of the said profit-seeking enterprise, that possess the houses, land, house utilization right, or presale house with building location.
    d. Relevant documents for identifying the current prices of domestic houses, land, house utilization rights, presale house with its building location.

  • Q28: What would happen if a foreign taxpayer fails to file house and land transactions income tax returns?

    The following items can be a simple guild to the questions above:
    (1) Failure to file within the time limit: A penalty in the amount of more than NT$3,000 but not more than NT$30,000. In case, there is tax payable, a penalty of a maximum of three times the amount of the tax payable but not less than the penalty of failure to file within the time limit.
    (2) Filing on time but late for paying: A delinquency charge in an amount equal to one percent of the amount of said tax shall be charged for every three days of delay(up to 10%). Where the period of delay exceeds thirty days, the case shall be referred to the Administrative Enforcement Agency for enforcement.
    (3) Omission or misfiling: A penalty of a maximum of twice the amount of the tax evaded.

  • Q29: How do foreigners to get more details if they have further inquiry?

    Foreigners who have any further queries can visit the website of National Taxation Bureau of Taipei at https://www.ntbt.gov.tw/English or make a phone call to (02) 23113711ext. 1116 or 1118.

  • Q30: What rights and obligations do foreigners have when they work in Taiwan?

    I. Observe the schedule of regular medical examinations:
    1. Foreign professionals: Foreigners applying to work in Taiwan as teachers at supplementary language schools should submit a certificate of medical examination issued within the previous 3 months by hospitals designated by the governing agency, i.e. the Ministry of Health and Welfare of the Republic of China. If the certificate of medical examination is issued by a foreign hospital, it must be authenticated by the overseas representative office of the Republic of China.
    2. Foreign Workers: Foreign workers shall undergo a medical examination arranged by employers in hospitals designated by the Department of Health of the Executive Yuan within 3 working days of arrival in Republic of China and within a period of 30 days before and after the expiry of 6 months, 18 months and 30 months..
    II. Apply for Alien Resident Certificate (ARC) within the prescribed time:
    Within 15 days upon arrival, foreigners holding a resident visa should bring relevant documents to a local service center of the National Immigration Agency to apply for an Alien Resident Certificate or entrust others to do so. Foreign workers are required to have fingerprint cards.
    III. Pay income tax on salary earned in Taiwan according to the following regulations:
    1. If a foreign worker has resided in Taiwan for 183 days or more within a taxable year, their applicable tax rate will be 5% to 40%. If the employer is a withholding agent under the income tax law, a foreign worker may request that their tax rate of 5% be deducted from their monthly salary or deducted in accordance with the appropriate income tax withholding law; if the income paid to the individuals who request that 5% be deducted from the monthly salary does not exceed NT$2,000 or an annual salary not exceeding NT$40,000,, such withholding will be exempt. Individuals who request that income be withheld in accordance with the appropriate tax withholding law will be exempt from such withholding if his or her monthly salary, staring from 2022, does not exceed NT$86,000.
    2. If a foreign worker who has resided in Taiwan for a period of less than 183 days, they are considered as  "non-residents" and their income tax will be withheld by their employer who is a tax withholding agent under the Income Tax Act. If a foreign worker's monthly income is equal to or lower than one and a half times of the monthly salary baseline salary as assessed by the Executive Yuan, 6% of the income will be withheld for income tax purposes. If their monthly income exceeds one and a half times of the monthly salary baseline salary, 18% of the income will be withheld for income tax purposes.
    3. For any foreign worker in Taiwan employed as a domestic helper or caregiver, due to the fact that your employer is not a withholding agent under the Income Tax Act, whether or not they are a "resident" or a "non-resident", their employer may not act as a withholder. Foreign workers still need to, in accordance with your labor contract, compute their monthly income tax and declare accordingly.
    4. If a foreign worker has resided in Taiwan for a period exceeding 90 days within one taxable year, they should file their income taxes. Filing of income tax for the current year should be done from May 1st to 31st of the following year. Those who will leave the country prior to the start of the time limit prescribed for filing income tax should file their income tax a week prior to their departure. If the filing is found to be eligible for a rebate, the tax bureau will issue a tax refund check in accordance with general refund procedures.
    5. If a foreign worker reports their income as less than the actual amount, they will be fined no more than twice of the income tax shortage. If they do not file income tax according to the law, they will be fined no more than three times of the tax shortage.
    IV. A written labor contract should be drawn up in accordance with the regulation:
    The employer should sign a written contract with a foreign worker, and said contract must be of a fixed length of time. Those contracts not specifying a fixed length of time are limited by when the work permit expires. This also applies when renewing a contract. The contract should be in Chinese and also in translation using the mother language of the foreign laborer.
    V. How to join into and withdraw from the labor insurance and the labor occupational accident insurance program: (for details, please log on to the Bureau of Labor Insurance, Ministry of Labor)
    1.Joining the labor insurance and the labor occupational accident insurance program: A foreigner above 15 years and below 65 years of age and employed in a company or firm that employs more than 5 workers must be covered by the labor insurance program according to the "Labor Insurance Act. "A foreigner above 15 years of age and employed in a company or firm must be covered by the labor occupational accident insurance program according to the " Labor Occupational Accident Insurance and Protection Act."
    The employer should submit the foreign worker's employment permit issued by a responsible entity, and a photocopy of the worker's Alien Resident Certificate or passport to the Bureau of Labor Insurance, Ministry of Labor in order to apply to join the labor insurance and the labor occupational accident insurance program. For those who are employed in a company or firm that employs less than 4 workers or foreign workers or who are hired by other industries, the employer may enroll them in the Labor Insurance system voluntarily.
    2. Withdrawing from the labor insurance and the labor occupational accident insurance program: The day the foreign worker's contract is due, or if the foreign worker voluntarily leaves the job early, or transfers to another employer to finish out his or her term, the business institution or the employer should apply to the Bureau of Labor Insurance, Ministry of Labor for the foreign worker's withdrawal from labor insurance and labor occupational accident insurance coverage.
    VI. How to join into and withdraw from National Health Insurance (NHI) coverage: (for details, please link to the website of the National Health Insurance Administration, Ministry of Health and Welfare
    1. Join the NHI program: All foreign workers holding an Alien Resident Certificates should join the NHI program. The employer should apply for health insurance related matters to the local division of the NHIA within three days starting from the day when the laborer fits the qualifications for joining the insurance program.
    2. Withdraw from the NHI program: Within three days starting from the day that the foreign laborer's contract is up, or the foreigner voluntarily leaves the job early or transfers to another employer to finish out his or her term, the foreign laborer should apply to the NHI to withdraw from insurance coverage.
    VII. Regulations of the working conditions as to the wage and working hours: (for detailed information, please visit the MOL website):
    1. Businesses covered by the "Labor Standards Act"
    If a foreigner is hired to work for businesses (manufacturing industry, construction industry, etc.) that fit the "Labor Standards Act," their wages, working hours, leave, overtime work, and terms of severance should be regulated in accordance with the "Labor Standards Act."
    Highlights of the existing related regulations are as follows:
    (1) Minimum wage(basic wage): The monthly minimum wage (basic wage) is NT$25,250, and the hourly minimum wage (basic wage) is NT$168 from January 1, 2022.
    (2)Regular working time: The regular working time of workers may not exceed eight hours a day nor forty hours a week.
    (3) Overtime hours: The extension of working hours, combined with the regular working hours shall not exceed twelve hours a day; the total number of overtime shall not exceed forty-six hours a month; however, the extension of working hours, with the consent of a labor union, or if no labor union exists in a business entity, with the approval of a labor-management conference, shall not exceed fifty-four hours a month and one hundred and thirty-eight hours every three months.
    (4) Overtime wages:
    (a)When the overtime work does not exceed two hours, the worker shall be paid, in addition to the regular hourly wage, at least an additional one-third of the regular hourly rate. When the overtime work is over two hours, but the total overtime work does not exceed four hours, the worker shall be paid, in addition to the regular hourly wage, at least an additional two-thirds of the regular hourly rate.
    (b)In accordance with Article 36, an employer shall pay a worker overtime wages when required to work on the rest days. When the overtime work does not exceed two hours, the worker shall be paid, in addition to the regular hourly wage, at least an additional one and one-third of the regular hourly rate. When the overtime work is over two hours, the worker shall be paid, in addition to the regular hourly wage, at least an additional one and two-thirds of the regular hourly rate.
    2.Businesses not covered by the "Labor Standards Act":
    If a foreigner is employed by businesses that do not fall under the "Labor Standards Act" (domestic helpers or household caretakers hired by family, etc.), terms regarding wages, working hours, leave and overtime work shall be regulated by the "labor contract" drawn up between the employee and the employer.