Taiwan Tax Overview

The system at a glance

Taiwan (Republic of China) taxes individuals and profit-seeking enterprises on a largely territorial (Taiwan-source) basis, administered by the Ministry of Finance through the National Taxation Bureaus. The tax year is the calendar year and the currency is the New Taiwan Dollar (TWD/NT$).

• Standard tax year — Calendar year (1 January – 31 December) (Income Tax Act)
• Currency — New Taiwan Dollar (TWD / NT$) (Ministry of Finance)
• Tax authority — Ministry of Finance, via the National Taxation Bureaus (e.g. NTB of Taipei) and eTax Portal (Ministry of Finance Organization Act)
• Basis of taxation — Territorial — Taiwan-source income is taxed; foreign-source income is generally outside the regular income tax but may fall under the Income Basic Tax (AMT) (Income Tax Act)
• Headline personal income tax rate — Progressive 5% to 40% for residents (top bracket on taxable income over TWD 4,980,000) percent (Income Tax Act)
• Headline corporate income tax rate — 20% profit-seeking enterprise income tax percent (Income Tax Act)
• Does VAT/GST exist? — Yes — a 5% value-added type business tax (VAT) applies to most goods and services percent (Value-added and Non-value-added Business Tax Act)
• Annual individual income tax filing deadline — 1 May – 31 May of the year following the tax year (Income Tax Act)
• Annual corporate income tax filing deadline — By 31 May following the fiscal year-end (last day of the fifth month after year-end for non-calendar years) (Income Tax Act)
• Income Basic Tax (Alternative Minimum Tax) — Individuals 20%; enterprises 12% (a 15% rate is proposed for in-scope multinational groups under the global minimum tax from 2025 — confirm) percent ((approx — confirm 15% MNE rate status)) (Income Basic Tax Act)