Taxation

Having set up a company as your investment in Taiwan, you will need to pay a variety of taxes including Value Added Tax, Company Income Tax, and Personal Income Tax.

• VAT (Value Added Tax)
  • Tax rate: 5% for businesses in general, 0% for goods exported or services provided to overseas customers
  • Time for filing: January, March, May, July, September, November
  • <Taiwan invoice app (Triplicate)>

• Company Income Tax
  • Tax rate: 20%
  • Time for filing:
    • May: annual filing
    • September: provisional payment
  • Tax on the company’s distributed profits:
    • For Taiwanese tax residents: the tax shall be incorporated into your personal income tax and filed in May next year
    • For non-Taiwanese tax residents: 21% shall be withheld, to be filed within 10 days
    • For the branch company of a foreign company: not required to pay the tax
  • Company profits not distributed: an additional tax of 5%

• Personal Income Tax
  • For tax residents
    • Tax rates: 5%, 12%, 20%, 30%, 40%
    • Time for filing: Every May
  • For non-tax residents (foreigners staying in Taiwan for less than 183 days in a fiscal year)
    • Tax rate: 6% or 18% of salary, 21% of dividends, 20% of other incomes
    • Time for filing: within 10 days