Living, working, investing, or running a business in Taiwan?

Understanding Taiwan's tax system is essential for avoiding unexpected tax bills, penalties, and filing problems.

The most important thing to understand is that your visa or residence permit does not automatically determine your tax status.

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Your Taiwan tax obligations generally depend on:

• How long you stay in Taiwan

• Whether you are considered a tax resident

• Where your income is earned

• What type of income you receive

• Whether you have income or assets overseas

 

1. First: Are You a Taiwan Tax Resident?

This is one of the most important questions for foreigners living in Taiwan.

For a foreign national without a Taiwan household registration, your tax status generally depends on how many days you stay in Taiwan during a tax year.

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Time spent in Taiwan         General tax status    General treatment

90 days or less                     Non-resident              Taiwan-source income is generally subject to withholding

 

More than 90 days                Non-resident              Taiwan-source income is generally taxed under non-

but fewer than 183 days                                           resident rules

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183 days or more                  Resident                     Generally required to file Taiwan individual income tax under                                                                                   resident rules

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Important:

If you have a Taiwan household registration, determining your tax status can involve additional rules and is not necessarily based solely on the 183-day rule.

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Why does this matter?

Your resident status can affect:

• Tax rates

• Filing requirements

• Deductions and exemptions

• Treatment of overseas income

• How income is reported and taxed

 

Tip: Keep track of the actual number of days you spend in Taiwan every year.

 

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2. Salary & Employment Income

If you work for a Taiwanese company, your employer will generally withhold income tax from your salary.

 

For Taiwan tax residents, the amount withheld during the year is generally only a prepayment of income tax.

 

When you file your annual tax return, your final tax liability is calculated based on your total taxable income and applicable deductions and exemptions.

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You may be eligible for items such as:

• Personal exemption

• Standard deduction or itemized deductions

• Special deduction for salary income

• Basic living expense difference

• Other legally available deductions

 

Important

The amount withheld from your monthly salary is not necessarily your final tax bill.

You may have to:

• Pay additional tax, or

• Receive a tax refund

after filing your annual return.

 

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3. Working Remotely for a Foreign Company

This is one of the most common areas of confusion for foreigners in Taiwan.

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For example:

You live in Taiwan and work remotely for a U.S. company.

 

You should not automatically assume that your income is outside the scope of Taiwan taxation simply because your employer is located overseas.

 

If you are a Taiwan tax resident and perform your work physically in Taiwan, the income may be subject to Taiwan tax rules.

 

The key question is not simply:

"Where is my employer located?"

 

You also need to consider:

"Where am I physically performing the work?"

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This is particularly important for:

• Remote workers

• Digital nomads

• Employees of overseas companies

• Consultants

• Freelancers

• People working for international startups

 

Before moving to Taiwan

If you plan to live in Taiwan while working remotely for an overseas company, it is strongly recommended that you clarify your Taiwan tax obligations before starting your arrangement.

 

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4. Freelancers, Consultants & Self-Employed Individuals

If you earn money in Taiwan as a:

• Freelancer

• Consultant

• Designer

• Translator

• Photographer

• Developer

• Online teacher

• Marketing professional

• Coach

• Independent contractor

your income may be treated differently from ordinary salary income.

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Depending on the nature of your work, it may be classified as professional practice income, business income, or another type of taxable income.

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Don't assume:

"I'm not an employee, so I don't need to file taxes."

That is not necessarily true.

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Your tax obligations may depend on:

• The type of services you provide

• Who pays you

• Where the services are performed

• Whether you operate a business

• Your annual income

• Your tax residency status

 

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5. YouTubers, Influencers & Online Creators

Online income is becoming increasingly important for foreigners living in Taiwan.

If you earn money through:

• YouTube

• TikTok

• Instagram

• Facebook

• Podcasts

• Livestreaming

• Online courses

• Paid subscriptions

• Sponsorships

• Affiliate marketing

• Viewer donations or tips

you may have Taiwan tax obligations.

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Depending on the circumstances, creator income may be treated as professional practice income or another category of taxable income.

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A common misconception

"YouTube is an American company, so my YouTube income is foreign income."

Not necessarily.

You may need to consider:

1. Are you a Taiwan tax resident?

2. What type of income are you receiving?

3. Where are you performing the activities that generate the income?

4. Who is paying you?

5. Is the income considered Taiwan-source income?

6. Are business registration or business tax requirements involved?

If you regularly earn money from online activities while living in Taiwan, professional tax advice is recommended.

 

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6. Dividends & Investment Income

Foreigners who invest in Taiwan may receive:

• Stock dividends

• Interest

• Investment income

• Other financial income

Taiwan-source dividends and investment income may be subject to withholding or annual tax filing, depending on your tax status and the type of income.

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Don't assume:

"The bank or company already withheld tax, so I don't need to do anything."

Withholding and final tax liability are not always the same thing.

 

Keep your:

• Dividend statements

• Bank records

• Withholding certificates

• Investment statements

for your annual tax filing.

 

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7. Bank Interest & Interest Income

Interest from sources such as:

• Taiwan bank deposits

• Time deposits

• Bonds

• Other financial products

 

may be taxable.

Banks may withhold tax when the interest is paid, but Taiwan tax residents should still review their annual income information when preparing their tax return.

 

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8. Rental Income

If you own property in Taiwan and rent it out, the rental income may be taxable.

 

For example:

Buy an apartment in Taiwan → rent it to a tenant → receive monthly rent

 

You may need to consider:

Income Tax

Rental income may need to be reported as taxable income.

 

Business Tax

Depending on the nature and circumstances of the rental activity, business tax or related registration requirements may apply.

 

Property Taxes

You may also have to deal with:

• House Tax

• Land Value Tax

• House-and-Land Transaction Income Tax when the property is sold

 

Important

Rental income should not be treated as simply:

"Money from my tenant."

It may have several different tax implications.

 

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9. Buying or Selling Property in Taiwan

If you buy property in Taiwan and later sell it, you may be subject to Taiwan's House-and-Land Transaction Income Tax system, commonly referred to as the house-and-land tax.

 

The tax treatment can depend on factors such as:

• When the property was acquired

• How long you held it

• Your tax residency status

• The date of the transaction

• The amount of gain

• Whether special rules apply

 

Before selling property

Foreign property owners should consider consulting a Taiwan tax professional before completing the transaction, rather than waiting until the tax return is due.

 

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10. Inheritance & Gift Tax

Foreigners may also encounter Taiwan's:

Inheritance Tax & Gift Tax

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For example:

A foreign resident receives property or money from a family member.

You should not automatically assume that a family transfer is tax-free.

The tax treatment can depend on:

• The donor's status

• The recipient's status

• Where the property is located

• The type of property

• The amount transferred

• Whether the assets are located in Taiwan or overseas

Large gifts, inheritances, or transfers of property should be reviewed with a tax professional before the transaction.

 

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11. Business Tax / VAT

If you operate a business in Taiwan, you may have obligations beyond personal income tax.

 

Examples include:

• Restaurants

• Retail stores

• Online shops

• Consulting businesses

• E-commerce

• Import/export businesses

• Agencies

• Freelance businesses

• Other commercial activities

 

Depending on your business structure and activities, you may need to consider:

Income Tax + Business Tax + Tax Registration + Invoicing Requirements

 

Example

You live in Taiwan and regularly sell products online.

You may have obligations involving both income tax and business tax, rather than simply reporting the money as personal income.

 

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12. Overseas Income

Overseas income can become particularly important once you become a Taiwan tax resident.

 

Examples include:

• U.S. stock dividends

• Overseas interest

• Foreign rental income

• Overseas business income

• Foreign investment gains

• Other offshore income

Being paid into an overseas bank account does not automatically mean that the income is outside Taiwan's tax system.

 

Taiwan's Basic Income Tax / Alternative Minimum Tax (AMT) rules may also become relevant to certain overseas income received by tax residents.

 

Important

If you have significant overseas income or investments, you should check whether your overseas income needs to be included when calculating your Taiwan basic income.

 

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13. Double Taxation

Some foreigners may have tax obligations in both Taiwan and another country.

 

For example:

You live in Taiwan but remain subject to tax filing requirements in your home country.

 

You may need to consider:

• Taiwan tax

• Foreign tax

• Tax treaties

• Foreign tax credits

• Where the income is sourced

• Which country has the right to tax the income

 

Don't assume:

"I already paid tax in my home country, so I don't have to pay tax in Taiwan."

 

The correct treatment depends on the specific income and the applicable rules.

If you have substantial cross-border income, professional tax advice is strongly recommended.

 

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14. Leaving Taiwan

If you have lived in Taiwan for several years and are planning to permanently leave, don't simply:

Cancel your residence permit → book a flight → leave

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First check whether you have any outstanding Taiwan tax obligations.

You may need to review:

• Current-year income

• Unpaid taxes

• Tax refunds

• Rental income

• Investment income

• Property transactions

• Business income

• Whether a tax filing is required before departure

 

Certain non-residents and individuals leaving Taiwan under specific circumstances may need to settle or file taxes before departure.

 

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15. Annual Income Tax Filing

For Taiwan tax residents, individual income tax is generally filed during the annual filing season in May,

covering income earned during the previous calendar year.

 

For example:

2025 income → filed in 2026

The exact filing deadline may be adjusted when the final day falls on a weekend or public holiday.

 

What should you prepare?

Keep records such as:

• Salary statements

• Withholding certificates

• Bank statements

• Investment statements

• Dividend records

• Rental agreements

• Business records

• Receipts

• Foreign tax records

• Previous tax returns

 

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16. The 10 Most Common Tax Mistakes Foreigners Make

1. Looking only at their visa

Visa status ≠ tax status

Your immigration status and tax residency are separate issues.

 

2. Assuming withheld tax means you're finished

Withholding is not necessarily your final tax liability.

 

3. Assuming overseas employers are automatically tax-free

Working physically from Taiwan can create Taiwan tax implications.

 

4. Assuming freelancers don't need to file

Freelance and professional income may still be taxable.

 

5. Forgetting online income

YouTube, TikTok, sponsorships, subscriptions, and other creator income may be taxable.

 

6. Forgetting rental income

Rental income can trigger income tax and potentially other tax obligations.

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7. Ignoring investments

Dividends, interest, and other investment income may need to be reported.

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8. Leaving Taiwan without checking taxes

You may have outstanding filing or payment obligations.

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9. Assuming a residence permit proves tax residency

An ARC or other residence document is not automatically the same thing as a tax residency determination.

 

10. Not telling your accountant that you have foreign income

If you have overseas income, investments, or a foreign employer, make sure your tax professional knows about them.

 

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A Simple Taiwan Tax Checklist for Foreigners

Use this checklist every year:

STEP 1

Count your days in Taiwan

    ↓

STEP 2

Determine your Taiwan tax residency status

    ↓

STEP 3

List all of your income

Include:

• Salary

• Freelance income

• Business income

• Rental income

• Dividends

• Interest

• Investment income

• Overseas income

    ↓

STEP 4

Determine the source and type of each income

    ↓

STEP 5

Check how much tax has already been withheld

    ↓

STEP 6

Check available exemptions and deductions

    ↓

STEP 7

Check whether overseas income and Taiwan's AMT rules apply

    ↓

STEP 8

File your annual income tax return

    ↓

STEP 9

Pay additional tax or claim a refund

    ↓

STEP 10

Keep your supporting documents

 

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Quick Guide: What Tax Issues Might Apply to You?

I work for a Taiwanese company  → Taiwan income tax

I work remotely for a foreign company  →  Check Taiwan tax rules carefully

I freelance in Taiwan  →  Income tax + potentially business/tax registration requirements

I operate an online business  →  Income Tax + potentially Business Tax

I rent out property in Taiwan  →  Rental income + property-related taxes

I own Taiwan stocks  →  Dividend and investment tax considerations

I sell property in Taiwan  →  House-and-Land Transaction Income Tax may apply

I have overseas income  →  Check foreign-income and AMT rules

I am leaving Taiwan permanently  →  Check whether departure-time tax filing or tax settlement is                                                                              required

 

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Important Disclaimer

Taiwan tax rules can vary significantly depending on your residency status, income type, source of income, business structure, property ownership, investment activities, and international tax situation.

 

This guide is intended for general informational purposes only and should not be treated as individual tax advice.

 

If you have significant overseas income, a foreign employer, a business in Taiwan, property, substantial investments, or a planned departure from Taiwan, consider consulting a Taiwan CPA, tax accountant, or other qualified tax professional before filing.

 

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Official Taiwan Tax Resources

For the most up-to-date information, foreigners should refer to Taiwan's official tax authorities, particularly the National Taxation Bureau and the Ministry of Finance eTax Portal.

 

Always verify current tax rates, thresholds, filing deadlines, and eligibility requirements with the official authorities before making tax decisions.

 

National Taxation Bureau : https://www.ntbt.gov.tw/English?utm_source=chatgpt.com

Ministry of Finance eTax Portal: https://www.etax.nat.gov.tw/etwmain/en

 

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If there is any updated information, please feel free to let us know so we can make corrections.

Thank you !

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