Source-cited draft: corporate income tax for Taiwan (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Written by the OpenAccountants team. Written by the OpenAccountants team from the official sources it cites.
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Overview of resident/non-resident taxation
Profit-seeking enterprises resident in Taiwan are taxed on worldwide income at a flat 20%; non-resident enterprises are taxed on Taiwan-source income, largely by withholding. A small-profits exemption and an undistributed-earnings surtax also apply.
Profit-seeking enterprise income tax rate
20Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/taxes-on-corporate-income)
Small-profit threshold
Enterprises with annual taxable income of TWD 120,000 or less are exempt; a tapering cap limits tax just above this thresholdIncome Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/taxes-on-corporate-income)
Tax base
Resident enterprises: worldwide net income (with foreign tax credit). Non-resident enterprises: Taiwan-source income onlyIncome Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/income-determination)
Surtax on undistributed earnings
Additional 5% on current-year earnings not distributed by the end of the following year (does not apply to Taiwan branches of foreign companies)Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/taxes-on-corporate-income)
Corporate Income Basic Tax (AMT)
12% standard rate (a 15% rate is proposed for in-scope MNE groups under the OECD global minimum tax from 2025 — confirm) (approx — confirm 15% MNE rate status)Income Basic Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/taxes-on-corporate-income)
Overview of withholding on outbound payments
Payments to non-resident enterprises are generally subject to final withholding at the rates below; tax treaties (Taiwan has roughly 35 in force) commonly reduce them.
Dividends to non-residents
21% (treaty rates often 5%–15%)Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/withholding-taxes)
Interest to non-residents
15% on qualifying bond/financial-instrument interest; 20% otherwise (treaty rates often 0%–15%)Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/withholding-taxes)
Royalties to non-residents
20% (may be exempt for approved IP rights; treaty rates often 3%–15%)Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/withholding-taxes)
Interest/royalties to residents
10% withholding (creditable against final liability)Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/withholding-taxes)
Overview of filing and payment
Enterprises self-assess annually and make an interim (provisional) payment mid-year.
Annual return deadline
By 31 May following the fiscal year-end (or the last day of the fifth month after a non-calendar year-end)Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/tax-administration)
Provisional (interim) tax payment
Generally 50% of the prior year's tax, payable in the ninth month of the fiscal year (by end of September for calendar-year taxpayers) (approx — confirm exact window)Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/tax-administration)
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