Do foreigners need to pay income tax in Taiwan?
Yes. If you earn any income in Taiwan, you are required to pay income tax — regardless of your nationality. This includes salary, freelance income, rental income, dividends, and more.
The amount you pay depends heavily on your tax residency status, which is determined by how many days you spend in Taiwan during a single calendar year (January 1 to December 31):
- Resident (183+ days in Taiwan): You're taxed at progressive rates from 5% to 40%, and you can claim deductions and exemptions that significantly reduce your tax bill.
- Non-resident (fewer than 183 days): You're taxed at a flat 18% on salary income and 21% on all other income. No deductions allowed.
Important: Residency is counted per calendar year. If you arrived in Taiwan in July, you'd only have about 184 days in that year — just barely qualifying as a resident. Every day counts!
Tax rates for residents vs non-residents
Resident progressive tax rates (2026)
| Net Taxable Income (NT$) | Tax Rate | Cumulative Difference |
|---|---|---|
| 0 - 590,000 | 5% | NT$0 |
| 590,001 - 1,330,000 | 12% | NT$41,300 |
| 1,330,001 - 2,660,000 | 20% | NT$147,700 |
| 2,660,001 - 4,980,000 | 30% | NT$413,700 |
| Over 4,980,000 | 40% | NT$911,700 |
Non-resident flat rates
| Income Type | Tax Rate |
|---|---|
| Salary & wages | 18% |
| Professional/freelance income | 20% |
| Rental income | 20% |
| Interest income | 20% |
| Dividends | 21% |
| Capital gains (certain types) | 20% |
Why residency matters — a comparison
| Scenario | Annual Salary NT$1,000,000 | Resident | Non-Resident |
|---|---|---|---|
| Gross income | NT$1,000,000 | NT$1,000,000 | |
| Less: exemption | -NT$97,000 | NT$0 | |
| Less: standard deduction | -NT$131,000 | NT$0 | |
| Less: salary deduction | -NT$218,000 | NT$0 | |
| Net taxable income | NT$554,000 | NT$1,000,000 | |
| Tax owed | NT$27,700 | NT$180,000 |
As you can see, resident status saves you NT$152,300 in this example — a massive difference. If you're close to the 183-day threshold, it's worth planning your travel accordingly.
How to calculate your income tax
Follow these steps to estimate your income tax as a resident:
Step 1: Calculate total gross income Add up all Taiwan-sourced income: salary, bonuses, freelance income, rental income, interest, dividends, etc.
Step 2: Subtract exemptions
- Personal exemption: NT$97,000 per person
- Spouse exemption: NT$97,000 (if filing jointly)
- Dependent exemption: NT$97,000 per dependent (children under 20, parents over 70 get NT$145,500)
Step 3: Subtract deductions (choose one)
- Standard deduction: NT$131,000 (single) / NT$262,000 (married filing jointly)
- Itemized deductions: If your actual deductible expenses exceed the standard deduction, itemize instead
Step 4: Subtract special deductions
- Salary income deduction: NT$218,000
- Savings/investment interest deduction: up to NT$270,000
- Disability deduction: NT$218,000 per qualifying person
- Childcare deduction: NT$120,000 per child under 5
- Education deduction: NT$25,000 per child in college
- Long-term care deduction: NT$120,000 per qualifying family member
Step 5: Apply the tax rate Net taxable income = Total income - Exemptions - Deductions - Special deductions Look up your rate in the progressive tax table above.
Step 6: Subtract tax credits Dividend income qualifies for an 8.5% tax credit (capped at NT$80,000).
Use the calculator above to run these numbers automatically!
What deductions can foreigners claim?
As a tax resident, you have two options for deductions:
Standard deduction (most common for foreigners)
- Single: NT$131,000
- Married filing jointly: NT$262,000
- No receipts needed — just claim it
Itemized deductions (if your expenses are higher)
| Deduction | Limit | Notes |
|---|---|---|
| NHI premiums | Unlimited | Your best deduction — no cap! |
| Other insurance premiums | NT$24,000 per person | Life, health, accident insurance |
| Medical expenses | Unlimited | Must be at NHI-contracted facilities |
| Charitable donations | Up to 20% of income | To registered Taiwan charities |
| Mortgage interest | NT$300,000 | For your primary residence in Taiwan |
| Rent paid | NT$180,000 | Cannot claim both rent and mortgage interest |
| Political donations | NT$200,000 | To registered political parties |
Pro tip: If you pay significant NHI premiums and medical expenses, itemized deductions often beat the standard deduction. Keep all your receipts!
Non-residents cannot claim any deductions or exemptions. Your tax is simply: income x flat rate.
How to file your tax return
Filing period
May 1 to May 31 every year, for the previous calendar year's income. For example, in May 2026 you file for income earned in 2025.
Filing methods
Method 1: Online filing (recommended)
- Visit the National Taxation Bureau e-filing website
- Log in using one of these methods:
- TW FidO (mobile identity verification) — easiest for foreigners
- NHI card + card reader — most common method
- MOICA Citizen Digital Certificate — requires a card reader
- Tax filing code — request at tax office or online
- Your employer-reported income is pre-filled — review and confirm
- Add any additional income or deductions
- Submit and save your confirmation receipt
Method 2: In person at the tax office
- Visit any National Taxation Bureau office during May
- Bring: ARC, passport, NHI card, income documents, receipts for deductions
- Staff will help you file — some offices have English-speaking assistants
- Foreigner-friendly offices: Taipei, Taichung, and Kaohsiung main offices
Method 3: Through a tax accountant
- Costs NT$3,000-10,000 depending on complexity
- Recommended if you have multiple income sources or complex situations
Documents to prepare
- ARC and passport
- Withholding tax statements from employer(s) (扣繳憑單)
- NHI premium payment records
- Insurance premium receipts
- Medical expense receipts
- Rental contract (if claiming rent deduction)
- Bank account number (for refund deposit)
When and how to get a tax refund
If your employer withheld more tax than you actually owe (common for residents), you'll get a refund:
| Refund Batch | Timing | Eligibility |
|---|---|---|
| First batch | End of July | Filed online before June 1 |
| Second batch | October | All other filers |
How refunds are paid:
- Bank transfer (fastest): Deposited directly into your Taiwan bank account
- Check: Mailed to your registered address — must be cashed within a limited period
Average refund for foreigners: NT$5,000 to NT$30,000, depending on how much was over-withheld. Employees earning under NT$1.5 million annually with standard deductions almost always get a refund.
Tip: File online as early as possible in May to get your refund in the first July batch.
Special tax situations for foreigners
Departure-year filing
If you're leaving Taiwan permanently, you must file a tax return before departure. Visit your local tax office with your ARC, passport, income statements, and proof of departure date. Your employer should provide a withholding statement covering your final pay.
Stock options and RSUs
Stock options granted by a foreign parent company are taxable in Taiwan when exercised. The taxable amount is the difference between the exercise price and market value on the exercise date. RSUs are taxed when they vest.
Overseas income
Only applies if both conditions are met:
- Your overseas income exceeds NT$1 million in a year
- Your total basic income (Taiwan + overseas) exceeds NT$7.5 million
Most expats earning a standard salary don't need to worry about this.
Tax treaty benefits
Taiwan has tax treaties with approximately 34 countries (including Japan, the UK, France, Germany, and others). Treaty benefits may include:
- Reduced withholding rates on dividends, interest, and royalties
- Exemption from double taxation
- Special provisions for teachers and researchers
Apply for treaty benefits through the National Taxation Bureau before or during filing.
Gold Card holder tax incentives
Employment Gold Card holders may qualify for a special tax incentive: if your annual salary exceeds NT$3 million, the portion above NT$3 million is 50% exempt from tax for the first 5 years (for income earned from first-time Taiwan tax residency).
Common tax questions for expats
Do I need to file if I earned less than NT$421,000? Technically, if your total income minus exemptions and deductions results in zero tax owed, you're not required to file. However, it's recommended to file anyway to get any withheld tax refunded.
What about freelance or English teaching income? All income earned in Taiwan is taxable, whether from a company, private tutoring, freelance work, or online teaching done while in Taiwan. If your payer didn't withhold tax, you must report it yourself when filing.
My employer withholds tax monthly — do I still need to file? Yes. Monthly withholding is an estimate. The annual filing in May is the true-up where you calculate your actual tax liability. Most employees who file discover they've overpaid and receive a refund.
What happens if I don't file? The tax office will calculate your tax based on reported income and send you a bill — without any deductions applied. You'll also face a penalty of up to 3x the unpaid tax amount. Don't skip filing.
Can I file jointly with my Taiwanese spouse? Yes, and it's usually beneficial. Married couples can choose to file jointly or separately for salary income. Filing jointly gives you double the standard deduction (NT$262,000) and may result in a lower overall tax rate.
Frequently Asked Questions
Do I need to file taxes as a foreigner?
Yes, if you earned any income in Taiwan during the calendar year. This applies regardless of nationality or visa type. Tax residents (183+ days in Taiwan) must file an annual return during May. Non-residents typically have taxes withheld at source by their employer, so they generally do not need to file separately — unless they want to claim a refund for over-withheld tax. Even if your income is below the taxable threshold, filing is recommended to recover any taxes your employer already withheld.
What tax rate applies to non-residents?
Non-residents (fewer than 183 days in Taiwan during the calendar year) are taxed at flat rates with no deductions allowed: 18% on salary and wages, 20% on professional/freelance income, rental income, and interest, and 21% on dividends. These rates are applied as withholding at the time of payment and are generally considered final tax. The difference is significant — a resident earning NT$1,000,000 might owe around NT$27,700 in tax, while a non-resident would owe NT$180,000 on the same salary.
Can I file taxes online in English?
The official eTax filing system is in Chinese only — there is no English interface. However, the system is relatively straightforward, and many foreigners navigate it successfully with the help of a bilingual colleague or browser translation tools. Your best options are: (1) use the online system with help from a Chinese-speaking friend, (2) visit the tax office in person where some locations have English-speaking staff (Taipei, Taichung, Kaohsiung main offices), or (3) hire a tax accountant who offers English services (typically NT$3,000–10,000).
When is the tax filing deadline?
The annual filing period is May 1 to May 31 each year, covering income earned in the previous calendar year. For example, income earned in 2025 is filed in May 2026. If you are leaving Taiwan permanently before May, you must file before your departure date. Filing early in May (by May 10) is recommended — early filers receive their refunds in the first batch around late July, while later filers may wait until October or January.
Related Reading
- How to File Taxes Online in Taiwan: Step-by-Step for Foreigners (2026) — File your return online
- How to Get a Tax Refund in Taiwan as a Foreigner (2026) — Claim your refund
- How to Open a Bank Account in Taiwan as a Foreigner — Needed for refunds and payroll
- How to Invest in Taiwan as a Foreigner | Stocks, ETF & Brokerage Guide (2026) — Taxation of investment income