Last Updated: April 2026
Taiwan has a straightforward income tax system with progressive rates from 5% to 40% for tax residents. The critical threshold for expats is the 183-day rule — spending 183 or more days in Taiwan in a calendar year makes you a tax resident eligible for the lower progressive rates. Below 183 days, a flat 18% applies to Taiwan-source income. Taiwan's tech sector dominance (TSMC, MediaTek, Foxconn, ASUS) attracts significant international talent, and understanding Taiwan's income tax system is increasingly relevant for tech professionals, semiconductor engineers, and remote workers.
According to the Ministry of Finance Taiwan, resident income tax rates for 2024:
| Net Taxable Income (NT$) | Rate |
|---|---|
| Up to NT$560,000 | 5% |
| NT$560,001–NT$1,260,000 | 12% |
| NT$1,260,001–NT$2,520,000 | 20% |
| NT$2,520,001–NT$4,720,000 | 30% |
| Above NT$4,720,000 | 40% |
Net taxable income = gross income minus basic exemption (NT$92,000/person), itemised or standard deductions (standard: NT$124,000 single / NT$248,000 married), and special deductions (salary deduction NT$207,000, disability NT$207,000, etc.).
For a single tech professional earning NT$1.5M (approximately US$47,000): net taxable income approximately NT$1,077,000; effective rate approximately 10–12% — one of the lowest effective rates for professional income in Asia.
Foreigners who spend fewer than 183 days in Taiwan in a calendar year are non-residents and are taxed at a flat rate on Taiwan-source income:
Non-residents cannot claim personal exemptions, standard deductions, or special deductions. The 18% flat rate with no deductions often results in non-residents paying more effective tax than residents at equivalent income levels — creating a strong incentive to meet the 183-day threshold for frequent visitors and assignees.
Previously, foreigners staying 90+ days paid a different blended rate. The current system simplifies this to a 183-day threshold with 18% below and progressive rates above. Confirm current rules with the local tax authority as these provisions have changed in recent years.
Taiwan generally does not levy capital gains tax on individual investors' securities transactions. Key points:
Since July 2021, Taiwan applies the Housing Tax on real estate gains: properties held less than 2 years: 45% of gain; 2–5 years: 35%; 5–10 years: 20%; 10+ years: 15%. Self-used primary residence: reduced rates (3–10% depending on holding period, with a NT$4M exclusion for long-term owner-occupiers). This replaced the previous complex land value increment tax regime for most residential transactions.
For Taiwan tax residents, dividends from Taiwanese companies have been subject to different treatment over time. From 2018:
For non-residents: 20% withholding on dividends, final tax, no further obligation. DTA reduced rates may apply depending on treaty country.
183-Day Rule: You become a Taiwan income tax resident if you reside in Taiwan for 183 or more days in a calendar year. Days of arrival and departure count as full days. You need not have a permanent address — physical presence determines residency.
Employers deduct monthly withholding at source. Annual filing reconciles the withholding with actual liability. Most PAYE employees with simple affairs receive a refund or pay a small balance. Self-employed and those with investment income must file regardless of employer withholding.
Taiwan's semiconductor and tech industry (TSMC, MediaTek, ASE Technology, ASUS, Acer, Foxconn) attracts significant international talent. Key considerations for tech expats:
Taiwan's low effective income tax rates on professional incomes (below those of Japan, Korea, or Australia at comparable levels) make it a relatively tax-efficient location for tech professionals in Asia.
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Open TWD & USD Accounts →Taiwan uses a 183-day presence test as the primary trigger for tax residency. If you spend 183 or more days in Taiwan in a calendar year (January 1 – December 31), you are taxed as a resident at progressive rates (5–40%) with access to personal exemptions and deductions. If you spend fewer than 183 days, you are a non-resident and your Taiwan-source income is taxed at a flat 18% (for employment) without deductions. Days are counted based on physical presence — partial days on arrival and departure both count as full days.
Generally no — individual investors' gains from selling shares listed on the Taiwan Stock Exchange (TWSE) or Taipei Exchange (TPEx) are exempt from capital gains tax in Taiwan. Taiwan abolished its securities transaction income tax for individuals, and the current system exempts most stock market gains. Gains on unlisted or OTC shares outside the exchanges may be treated differently. Real estate gains are subject to the Housing Tax (房地合一稅) at 15–45% depending on holding period. Dividend income is taxable (at progressive or flat 28% rates for residents; 20% withholding for non-residents).
Taiwan's National Health Insurance (全民健康保險, NHI) is a universal single-payer system covering all residents including foreigners legally residing in Taiwan. Coverage begins after 4 months of residency (or immediately for employment pass holders). Premiums are income-based: employee contribution approximately 2.35% of insured salary; employer pays approximately 5.17% total (employer portion ~3.5%, employee ~2.35%). The premium is calculated on a standard insured salary amount, not total compensation. Taiwan's NHI is consistently ranked among the world's best — hospital and clinic access is universal, costs are very low (NT$100–500 for most doctor visits), and wait times are generally short.
Taiwan's Employment Gold Card (就業金卡) is a combined work permit, resident visa, and alien resident certificate for high-skilled foreign professionals. Eligibility: professionals in designated fields (technology, finance, healthcare, law, education, arts and culture, sports) with minimum income or professional credentials. Benefits: 3-year open work rights (no employer sponsorship needed); simplified residency; tax incentive — 50% of employment income above NT$3M is excluded from taxable income for a 3-year period (a significant benefit for high earners). Application: via the Gold Card Office website. This is one of Taiwan's most effective tools for attracting international tech talent.
Taiwan does not have a formal double taxation agreement with most major countries because its official diplomatic status is contested globally. The US does not have a standard DTA with Taiwan (Taiwan is not a UN-recognised state and the US formally recognises the People's Republic of China). The US-Taiwan Tax Agreement (1998) provides some protections but is not a comprehensive DTA. The UK similarly lacks a standard DTA with Taiwan. In practice, foreign tax credit mechanisms in the resident's home country (FEIE/FTC in the US; FTC in the UK) provide relief from double taxation on Taiwan-source income. Taiwan has signed tax agreements with some countries through unofficial channels.