Taiwan Corporate Income Tax

Rates and tax base

• 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 — 20 percent (Income 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 threshold TWD (Income 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 only (Income 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) percent (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) percent (Income Basic Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/taxes-on-corporate-income))

Withholding tax on outbound payments

• 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%) percent (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%) percent (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%) percent (Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/withholding-taxes))
• Interest/royalties to residents — 10% withholding (creditable against final liability) percent (Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/withholding-taxes))

Filing and payment

• 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))