I. Individual Income Tax
1. Alien individual income tax and the period of residencee
For any alien having income from sources in the Republic of China (R.O.C.), individual income tax shall be levied on the income derived from such sources in accordance with the Income Tax Act of the R.O.C. Alien taxpayers can be categorized as “Non-Residents of the R.O.C.” and “Residents of the R.O.C.” based on their length of stay. The different ways for aliens to file income tax returns are listed below.
(1)“Non-Residents” of the R.O.C.
A. For an individual who stays in the R.O.C. not more than 90 days within a taxable year (January 1 to December 31), the income derived from sources in the R.O.C. shall be withheld according to the withholding rate (see Article 18) and paid at the respective sources. The taxpayer needs not file an income tax return. However, if an individual has income derived from property transactions, an individual’s incidental trading, interest from mortgages, etc., he/she should declare and pay tax prior to departure.
B. For an individual who stays in the R.O.C. over 90 days but less than 183 days within a taxable year, individual income tax shall be declared and computed according to the withholding rate (see Article 18) on his/her income derived from sources in the R.O.C., including the remunerations derived from abroad for his/her services rendered in the R.O.C.
(2)“Residents” of the R.O.C.
For an individual who stays in the R.O.C. for 183 days or longer within a taxable year is regarded as a resident, the individual income tax shall be declared and assessed by a progressive rate (see Article 17) on the amount of his/her net consolidated income (taxable income) which shall be the annual gross consolidated income (including the various incomes derived within the R.O.C. and the remunerations derived outside the R.O.C. for services rendered in the R.O.C.) minus the exemptions, deductions, and basic living expense difference.

2. Income from sources in the R.O.C
The following categories are considered income from sources in the R.O.C.
(1)Dividends distributed by companies incorporated and registered in accordance with the Company Act of the R.O.C. and by foreign companies authorized by the Government of the R.O.C. to operate within the R.O.C.
(2)Profits distributed by profit-seeking enterprises organized in the form of a cooperative or a partnership within the R.O.C.
(3)Remunerations for services rendered by an individual within the R.O.C. and income derived from employer(s) outside the R.O.C. for services rendered in the R.O.C. for those who have stayed in the R.O.C. over 90 days within one taxable year (see Notes).
Notes:
1. Employment income is one kind of remuneration which means income derived in respect of employment exercised or work performed, including salaries, stipends, wages, allowances, annuities, endowments, bonuses, or any other similar subsidies or compensation.
2. Each person receiving salaries and wages may claim a special deduction for employment income up to a maximum of NT$218,000 or the necessary expenses directly related to performing duties or doing work and borne by the recipient to be deducted from his or her salaries and wages in accordance with Subparagraph 1, Category 3, Paragraph 1 of Article 14 of the Income Tax Act. For filing the necessary expenses deducted from salaries and wages, please submit the “Application for Necessary Expenses Deducted from Salaries and Wages” and other supporting documents when declaring.
Special deduction for employment income shall not apply to the income from salary and wages calculated in accordance with necessary expenses deducted from salaries and wages when calculating the tax payable in accordance with Article 15 and calculating the net consolidated income in accordance with Article 17 of the Income Tax Act.
3. Based on the Article 22 of Act for the Recruitment and Employment of Foreign Professionals (previously Article 20, and was renumbered as Article 22 when the Act was amended and promulgated on September 24, 2025), from 2018 if a foreign specialist professional engaging in professional work and meeting certain requirements has no household registration in the R.O.C. and has for the first time been approved to reside in the R.O.C. for the purpose of work or has obtained an Employment Gold Card, and during the period of validity of the Employment Gold Card is employed to conduct professional work, then during the first 5 years starting from the tax year in which the foreign specialist professional for the first time meets the conditions of residing in the R.O.C. for 183 full days, and having an annual employment income of over NT$3,000,000, half of the amount of the employment income exceeding NT$3,000,000 of each such tax year may be excluded from the gross consolidated income for the assessment of individual income tax liability. Overseas income is excluded from the basic income when calculating the income basic tax. Please submit the “Application for Exemption from Income Tax for Foreign Specialist Professionals” and other supporting documents when declaring.
(4)Professional income for performances or services rendered by the practitioner of a profession within the R.O.C. For individuals obligated to declare content creator revenue in accordance with the “Operation Directions on the Levy of Income Tax on Individuals Who Publish Creative or Informational Content Online,” please file the “Income Statement for a Content Creator’s Professional Practice” together with the Individual Income Tax Return (General Form).
(5)Interest obtained from various levels of government of the R.O.C., from juristic persons within the R.O.C., and from individuals residing in the R.O.C.
(6)Rentals obtained from the lease of property situated within the R.O.C.
(7)Royalties obtained from patents, registered trademarks, copyrights, secret formulas, and franchises by virtue of their being made available for use by other persons within the R.O.C.
(8)Gains from the transaction of properties within the R.O.C.
(9)Profits from the operation of industry, commerce, agriculture, forestry, fishery, animal husbandry, mining, and metallurgy enterprises within the R.O.C.
(10)Prizes and awards obtained from participating in various contests of skill, games, lotteries, etc. in the R.O.C.
(11)Payments for retirement, severance, separation, resignation, life-time pensions, old-age pensions not covered by insurance benefits, and the insurance payments made under annuity insurance according to the Labor Pension Act received by a person, but not including the following: legitimate savings made by the said person from the taxable income of his/ her salary every year; the insurance payment from the voluntary annuity insurance premiums according to the Labor Pension Act every year; and/or the interest accrued from the above-mentioned savings and the premiums.
(12)Any other income obtained within the territory of the R.O.C.

3. Definition of “taxable year”
A full year from January 1 to December 31 is a taxable year.

4. Computation of residence
The computation of an alien’s period of residence in the R.O.C. is based on the dates stamped on his/her passport or the Certificate of Entry and Exit Dates issued by the National Immigration Agency, Ministry of the Interior (excluding the date of arrival and including the date of departure). If an alien enters and exits this country a number of times within a taxable year, the period of residence shall be the total number of accumulated days.|

5. Determination of income
For an alien who remains in the R.O.C. within one taxable year:
(1)Not more than 90 days:
A. The income tax shall be withheld at the income sources or declared and taxed in accordance with the withholding rate.
B. The income tax shall be exempted from income derived from employer(s) outside the R.O.C.
(2)More than 90 days:
A. The income derived within the R.O.C. shall be filed in accordance with a withholding statement as declared by the taxpayer.
B. Income paid by an employer outside the territory of the R.O.C. must also be reported by the taxpayer. The taxpayer will be required to submit a certificate of earnings notarized by the tax authorities concerned from the employer(s) outside the territory of the R.O.C. If a certificate from the tax authorities is not available, a notarized certificate issued by a notary public or certified public accountant (CPA) is acceptable. In the case where such a certificate is to be used, a photocopy of the license of the CPA, who issued the certificate, must also be submitted. If the taxpayer fails to submit a certificate of earnings issued by the tax authority or certified by a notary public or CPA, the tax office will assess the amount payable according to the standard amounts. Any income received in foreign currency should be exchanged into New Taiwan Dollars on the basis of the official foreign exchange rates or prevailing transfer rates at the time the income is actually or constructively received.

6. When tax payment is due
The tax payment due is different for aliens staying for different lengths of time in the R.O.C.
(1)For an individual staying in the R.O.C. for not more than 90 days, the income tax payable shall be withheld directly at the time of payment by the withholder in accordance with the withholding rate. However, in the case that an individual has sole or additional income deriving from sources to which such procedure for withholding is not ordinarily applied, such as profit from exercising stock options, interest from mortgages, etc., he/she should declare income and make the tax payment before his/her departure.
(2)For an individual staying in the R.O.C. over 90 days but less than 183 days, the income tax payable shall be withheld directly at the time of payment by the withholder in accordance with the withholding rate. (The employer is responsible for the preparation of a “Withholding & Non-Withholding Tax Statement,” which will be required when the taxpayer is filing a tax return.) Furthermore, income derived from abroad for services rendered within the R.O.C., or any income not applicable to the withholding procedure mentioned above, such as profit from exercising stock options, interest from mortgages, etc., should be declared and tax should be paid before departure.
(3)Any individual staying in the R.O.C. for 183 days or longer shall file the annual income tax return of the previous year from May 1 to May 31 of the current year (if May 31 falls on Saturday, Sunday, a national holiday, or any other holiday, the due day is postponed to the next workday).
However, any individual who intends to leave the territory of the R.O.C. in the interim of the year and will not return within the same taxable year shall file his/her income tax return around 10 days before his/her departure.

7. Tax services
(1)An alien shall file his/her individual income tax return to the competent tax collection authority, which has jurisdiction over the location of the address given on his/her Alien Resident Certificate.
(2)An alien, who stays in Taipei City, shall file his/her tax return at the Foreign Taxpayer Service Section, National Taxation Bureau of Taipei, Ministry of Finance: No. 2, Sec. 1, Zhonghua Rd., Taipei City.

8. Filing individual income tax return online
Any alien (excluding Mainland Chinese) with a valid resident certificate and ARC No. issued by the National Immigration Agency may file an individual income tax return online for the year 2025 from May 1, 2026 to June 1, 2026. After downloading the electronic tax-filing program at https://tax.nat.gov.tw, taxpayers can log into the system via an Alien Citizen Digital Certificate, Registered National Health Insurance Card with password, a Financial Certification Authority (Financial CA), or by entering the ARC No. and Passport/Resident/Permit No. as specified on the ARC as of January 31, 2026, and follow the instructions given in the program to file income tax returns online. If any document is required for filing, taxpayers shall submit it in person or send it by post before June 11, 2026.

9. The method adopted to compute income tax in the case that income tax was initially paid and filed while the alien had stayed less than 183 days, and then the said alien continued to stay for 183 days or longer in the same taxable year
If the alien left the R.O.C. after he/she had been taxed at the flat rate for non-resident status, and then returned in the same taxable year and continued to stay in the R.O.C. for 183 days or longer, the tax payable for that year shall be reassessed at the progressive rate for resident status. The tax previously paid will be credited.

10. Documents to be submitted when filing individual income tax
Please prepare basic documents when filing, including a valid passport, tax withholding statement, dividend statement, certificate of residence, and certificate of earnings paid abroad for services rendered in the R.O.C. Furthermore, if a taxpayer with special qualifications seeks to apply for tax exemptions or deductions, the proper documents of evidence should be submitted to the tax authorities for tax assessment.

11. Scope of exemptions
The following categories of income can be exempted by submitting the necessary documents:
(1)Scholarships and subsidies granted by the R.O.C. government or foreign governments; international institutions; educational, cultural, and scientific research organizations or associations; and other public or private organizations for the encouragement of advanced studies, research, or participation in scientific and professional training, except for the scholarships or subsidies received as remuneration by the taxpayer for service rendered to the grantors.
(2)Income, derived by virtue of office, of foreign diplomatic officials, consular officials, and other persons entitled to treatment accordable to diplomatic officials in the service of foreign embassies, legations, and consulates in the R.O.C.
(3)Income, derived by virtue of office, of employees other than diplomatic officials, consular officials, and persons entitled to diplomatic treatment, who, being nationals of a foreign country, are employed by the embassy, legation, or consulate of their country or by subsidiary agencies thereof in the R.O.C. provided that reciprocal treatment is accorded by the foreign country concerned to employees of R.O.C. nationality, employed by embassies, legations, or consulates of the R.O.C. or by subsidiary agencies thereof, in the foreign country concerned.
(4)Salaries paid by foreign governmental agencies, organizations, or educational and cultural institutions to foreign technicians and professors of universities and colleges for services rendered within the territory of the R.O.C. under technical cooperation or cultural and educational exchange agreements made by and between such foreign governmental agencies, organizations, or educational and cultural institutions and those of the R.O.C.
(5)Income derived from written articles, copyright books, musical compositions, musical productions, dramas, cartoons, or as remuneration for speeches and lectures on an hourly basis. However, the total amount of such income for the whole year shall not exceed NT$180,000.
(6)Various payments paid to personnel engaged in handling various kinds of examinations held by governmental agencies or academic organizations as commissioned by such agencies and in entrance examinations held by public and private schools of various levels.
For more details about exempt income, please refer to Article 4 of the Income Tax Act.

12. The applicable deductions for a resident of the R.O.C. in filing his/her income tax return of 2025
Residents of the R.O.C. are entitled to have the following exemptions and deductions:
(1)Exemption: There is an NT$97,000 exemption for each taxpayer, spouse, and dependent. In the case that the taxpayer, his/her spouse, or their lineal ascendants have attained 70 years of age, the exemption will be NT$145,500. The dependents must be:
A. Lineal ascendants of the taxpayer or his/her spouse having attained 60 years of age or being incapable of earning a livelihood and being supported by the taxpayer.
B. Children of the taxpayer who are minors, or who, although having attained the age of majority, are being supported by the taxpayer by reason of their studying in school, or having physical or mental disability, or being incapable of earning a livelihood.
C. Brothers and sisters of the taxpayer or his/her spouse who are minors, or who, although having attained the age of majority, are being supported by the taxpayer by reason of their studying in school, or having physical or mental disability, or being incapable of earning a livelihood.
D. Other relatives or members of the family of the taxpayer as defined in accordance with Subparagraph 4, Article 1114, or Paragraph 3, Article 1123 of the Civil Code who are minors, or who, although having attained the age of majority, are actually being supported by the taxpayer by reason of their studying in school, or having physical or mental disability, or being incapable of earning a livelihood, and live together with and depend on the taxpayer.
To claim exemption for the spouse or the dependent (excluding other dependents, i.e. aunt or uncle, cousin, grandchild, and nephew or niece) who does not reside with the taxpayer in the R.O.C., the household registration or the official certificates of the dependent should be submitted.
(2)Deductions: A taxpayer may select either the “Standard Deduction” or “Itemized Deductions” and may, in addition thereto, declare special deductions:
A. Standard Deduction: There is a NT$131,000 deduction for a single person and a NT$262,000 deduction for a married couple filing a joint return (even if only one of the couple had income).
B. Itemized Deductions: Original receipts for (a) to (e) deductions below must be attached.
(a) Donation:
i. The following kinds of donation are fully deductible: Donations made to national defense, for encouragement of the morale of members of the armed forces, to the government, or to non-departmental public bodies; the artifacts, specimens, works of art or facilities to public museums under the Museum Act; for the maintenance and repair of antiquities, historic buildings, under the Cultural Heritage Preservation Act; to the National Culture and Arts Foundation or the cultural foundations of municipalities, counties or cities; the artifacts, works of art, monuments, etc. to the government under the Culture and the Arts Reward and Promotion Act; or to unspecified athletes through a designated account set up by the central authority under the Sports Industry Development Act.
ii. The deduction of the following kinds of donation should not be more than 20% of gross income: Donations made to officially registered educational, cultural, public welfare, and charitable organizations or institutions, or to specific athletes through a designated account set up by the central authority under the Sports Industry Development Act.
(b) Insurance Premiums: Premiums paid for life insurance, labor insurance, national annuity insurance, employment insurance, and insurance for military personnel, public functionaries and teachers, of the taxpayer, his/her spouse, and their lineal dependents filing jointly are deductible. However, the deductions, excluding those for national health insurance, shall not exceed NT$24,000 for each person per year; premiums paid for national health insurance are fully deductible.
(c) Medical and Maternity Expenses: Medical and maternity expenses incurred by the taxpayer, his/her spouse, and their dependents filing jointly and supported by the taxpayer are deductible, provided that the payment so made is limited to public hospitals, specially contracted hospitals or clinics for the National Health Insurance, or those hospitals having complete and correct accounting records as recognized by the Ministry of Finance. However, no deduction shall be allowed for the portion covered by insurance payments. Claims for deductions of fees paid to foreign hospitals must be supported by evidence of the officially registered status of the hospital concerned. If the taxpayer, his/her spouse, or any dependent in a joint return, who needs long-term nursing services due to lack of capacity to take care of himself/herself, may submit the medical payment receipts from the hospitals or clinics mentioned above for deduction.
(d) Losses from Disasters: Losses from disasters or force majeure inflicted on the taxpayer, his/her spouse, and their dependents filing jointly are deductible. However, no deduction may be made for the portion of losses where insurance benefits and/or relief have been received. To claim a deduction, the taxpayer should apply to the tax authorities for an investigator to appraise the losses within 30 days after the occurrence of the disaster.
(e) Interest on a house mortgage for an Owner-Occupied Residence: A taxpayer, his/her spouse, and their dependents filing jointly borrowing money from a financial organization to purchase a house or other property in the R.O.C. for use as an owner-occupied residence may deduct the interest paid on the loan from the gross income on one filing unit per year up to a limit of NT$300,000. Such a deduction is limited to one house or other property only. However, if the taxpayer also claims a special deduction for savings and investment (please refer to item (b) of C. of (2) of Article 12), the special deduction should be subtracted from the above-mentioned interest.
C. Special Deductions:
(a) Special Deduction for Loss from Property Transactions: Losses from property transactions may be deducted from the gains derived from property transactions for the same year. However, losses arising from tax-exempt property transactions are not deductible. If the deductible amount exceeds the gains, the difference may be carried forward for up to 3 years.
(b) Special Deduction for Savings and Investment: Interest derived from deposits made in financial institutions and profits accrued from trust funds with the nature of savings, as well as dividends occurred from the transaction, gift, or inheritance of the tax-deferred stocks divided before December 31, 1998 received by a taxpayer, his/her spouse, and the dependents filing jointly listed in his/her gross income return for taxation may be exempt from income tax in full, if the total amount of such income for the whole year does not exceed NT$270,000. If the amount exceeds NT$270,000, the deduction shall be limited to NT$270,000. However, the following kinds of interest are excluded from the special deduction for savings and investment:
i. The interest accrued from postal passbook savings under the provisions of the Postal Remittances and Savings Act;
ii. The interest derived or accrued from government bonds, corporate bonds, financial bonds, and short-term commercial papers;
iii. The interest derived from asset-backed securities issued in accordance with the Financial Asset Securitization Act and the Real Estate Securitization Act;
iv. The interest derived from repo (RP/RS) trade whereby an individual purchases securities or short-term commercial papers as listed in preceding items ii. and iii from January 1, 2010.
(c) Special Deduction for Disability:
There is a NT$218,000 deduction for each taxpayer, spouse, and dependent who is a mental patient or a disabled person. A copy of the disability identification issued by the relevant authority of the R.O.C. in accordance with the provision of applicable laws should be attached when claiming this deduction.
(d) Special Deduction for Educational Tuition:
The taxpayer may claim a maximum deduction of NT$25,000 for each child attending college/university (the student certificate and tuition receipt should be attached when claiming the deduction). However, no deduction can be claimed for a child who is attending an open university, an open junior college, or a five-year junior college for the first three years, as well as collecting a government subsidy.
(e) Special Deduction for Pre-School Children: For a taxpayer who has children under or equal to 6 years of age, the amount of deduction for the first pre-school child is NT$150,000 per year; the amount of deduction for a second child and more is NT$225,000 per child per year.
(f) Special Deduction for Long-Term Care: The taxpayer, his/her spouse or any dependent who has a physical or mental disability and requires long term care services, as announced in Explanatory Decree No. 11304656750 by the Ministry of Health and Welfare, shall submit the relevant documents to claim the special deduction of NT$180,000 per person per year if his/her circumstances do not fall under any of the conditions (see Notes).
(g) Special Deduction for Rent for Housing: Rent for housing in the R.O.C. paid by a taxpayer, his or her spouse, and lineal dependents and used as their own residence rather than for business or performing professional services, may be deducted from their consolidated income up to a limit of NT$180,000 per year per tax return, not including government subsidy, if his/her circumstances do not fall under any of the conditions (see Notes). However, no deduction shall be made for taxpayers, their spouses, or lineal dependents who own a house in the R.O.C., unless the self-owned house meets the conditions mentioned in Explanatory Decree No. 11304656750.
Notes:
i. After deducting the long-term care deduction and rent for housing deduction, the tax rate is equal to or greater than 20% or the tax rate of the taxpayer’s or his/her spouse’s separately computed employment income or categorized income is equal to or greater than 20%.
ii. Opting for the single tax rate of 28% on the total amount of the dividends and earnings computed separately.
iii. The amount of the basic income is greater than NT$7,500,000.
(3)Basic Living Expense Difference: The basic living expense per person, NT$213,000, announced by the central authority in 2025, will be multiplied by the number of taxpayer, spouse, and dependents of that tax return to compute the total basic living expense. If the amount of total basic living expense is higher than the sum of exemptions, standard deduction (or itemized deduction), special deduction for savings and investment, special deduction for disability, special deduction for educational tuition, special deduction for pre-school children, special deduction for long-term care, and special deduction for rent for housing, the difference can be used as an additional deduction from the gross consolidated income.
If a resident of the R.O.C. intends to depart and will not return within the same calendar year, the amounts for exemptions, standard deduction, and basic living expense shall be calculated in proportion to the total number of days he/she stayed in the R.O.C.

14. Deduction for Investing in Biotech and Pharmaceutical companies
Pursuant to Article 8 of the Act for the Development of Biotech and Pharmaceutical Industry, an individual who invests in cash in a biotech and pharmaceutical industry not listed on the Taiwan Stock Exchange or the Taipei Exchange that has been established for less than the number of years specified in Paragraph 2 of the same Article, and whose investment in the same company in a taxable year amounts to at least NT$1,000,000, and who acquires newly issued shares of the company and holds them for a period of 3 years, may deduct up to 50% of the investment amount from his or her consolidated income within 2 years from the taxable year in which the 3-year holding period is completed. The total amount that an individual may deduct under this provision in any year shall not exceed NT$5,000,000.
(When filing the tax return, please attach the “Certificate of Deduction for Investment in the Biotech and Pharmaceutical Companies of the R.O.C.” issued by the National Taxation Bureau.)

15. Deduction for Investing in Cultural and Creative Industries
Pursuant to Article 27-2 of the Development of the Cultural and Creative Industries Act, an individual who invests in cash in a domestic, high-risk innovative startup company or limited partnership that has been established for less than 2 years whose establishment has been approved by the Ministry of Culture, or in a project approved by the Ministry of Culture, and whose investment in the same company, partnership, or project in a taxable year amounts to at least NT$500,000, and who holds the newly issued shares, capital contributions, or investment in such project for a period of 2 years, may deduct up to 50% of the investment amount from his or her consolidated income for the taxable year in which the 2-year holding or investment period is completed. Where an individual applies both the aforesaid investment deduction and any other investment deduction provided under other laws in the same taxable year, the total deductible amount from the individual’s consolidated income for that year shall not exceed NT$3,000,000.
(When filing the tax return, please attach the “Certificate of Deduction for Investment in the Cultural and Creative Industries of the R.O.C.” issued by the National Taxation Bureau.)

16. Tax due on a resident of R.O.C
A taxpayer should file the gross consolidated income of himself/herself, his/her spouse, and his/her dependents jointly. However, a taxpayer shall choose one of the ways listed below to calculate the tax payable:
(1)Calculate the tax payable jointly.
(2)Calculate the tax payable either on his/her employment income or his/her spouse’s employment income separately, and then declare and pay the amount of tax together. In this case, only the tax-exempt amount may be deducted from the employment income computed separately, whereas all other exemptions and deductions applicable to the person whose employment income is computed separately shall be declared in the tax return of the taxpayer.
The taxpayer may not make a duplicate claim for an exemption of the person whose employment income is computed separately when computing the amount of income tax payable by him/her.
(3)The taxpayer can choose, on the other hand, to calculate tax due by separating one’s categorized income (with his/her exemption, relevant special deduction for loss from property transactions, special deduction for savings and investment, special deduction for disability, special deduction for pre-school children, and special deduction for long-term care), and then declare and pay the amount of tax jointly. Special deduction for savings and investment should first be deducted from the spouse’s and dependents’ interest income within the limitation of NT$270,000, and then the residual, if any, can be deducted from one’s categorized income. As to the special deduction for property losses, such deduction is limited to personal transactions, as well as relevant property gains.
From January 1, 2018, tax payable of a taxpayer, his/her spouse, and dependents computed in the annual income tax return may be offset from the amount of tax credit, based on 8.5% of the total amount of the dividends and earnings distributed by a company, a cooperative, or other juristic person in the year 1998 or each ensuing year thereafter, with the credit ceiling set at NT$80,000 per year per income tax return.
The taxpayer could opt to calculate the tax payable separately in accordance with the single tax rate of 28% on the total amount of the dividends and earnings, and such tax payable shall be included in the consolidated income tax return filed by the taxpayer and excluded from the above-mentioned calculation method and from the preceding paragraph tax credit.

17. Progressive tax rates (Unit: NT$)
Table of Progressive Tax Rates for Year 2025

18. Regulations applicable to non-residents of the R.O.C.
(1)The withholding tax rate on dividend distributed by a company, profit distributed by a cooperative, earnings payable by a profit-seeking enterprise organized as a partnership to its partners each year, or earnings from a profit-seeking enterprise organized as a sole proprietorship each year is 21%.
(2)The withholding tax rate on salaries is 18%. In the case that the monthly salaries in full amount are equal to or lower than one and a half times of the monthly baseline salary as assessed by the Executive Yuan, the withholding tax rate is 6% from January 1, 2009.
(3)The withholding tax rate on commissions is 20%.
(4)The withholding tax rate on interest is 20%. However, the kinds of interest listed below shall be withheld in accordance with their associated regulations:
A. The portion of the pecuniary amount realized by short-term commercial papers at their maturity in excess of the selling price at their initial issuance is deemed as income from interest and shall be withheld by 15%.
B. The interest distributed from beneficiary securities or asset-backed securities issued in accordance with the Financial Asset Securitization Act or the Real Estate Securitization Act shall be withheld by 15%.
C. The interest accrued from government bonds, corporate bonds, and financial bonds shall be withheld by 15%.
D. The interest derived from repo (RP/RS) trade whereby an individual purchases short-term commercial papers or securities as listed in the preceding items A., B., or C. shall be withheld by 15% of the net amount of the sale price at maturity in excess of the original purchase price.
(5)The withholding tax rate on rentals is 20%.
(6)The withholding tax rate on royalties is 20%.
(7)The withholding tax rate on cash awards or payments given in contests or prizes won by chance is 20%. However, taxation is exempted when the prize is not more than NT$5,000 from lottery tickets or uniform invoices issued under the auspices of the government.
(8)The withholding tax rate on the remuneration to a professional practice is 20%.
(9)After deducting any regulated exemption, retirement payments or pensions shall be withheld at the rate of 18%.
(10)The withholding tax rate on payment of reward for information or accusation is 20%.
Additionally, income which is not subject to the above withholding rates shall be filed and taxed in accordance with the following:
(1)Income from property transactions shall be filed and taxed at the rate of 20%.
(2)Profits from exercising stock options shall be filed and taxed at the rate of 20%.
(3)In the case of income from the transfer of tax-deferred stocks, the par value of the stocks shall be deemed as the taxable income of the year of transfer. If the actual transfer price of such stocks at the time of sale or the market value of such stocks at the time of bestowal or distribution of the estate is lower than the par value, the actual transfer price or the market value shall be deemed the taxable income. Such income shall be filed and taxed at the rate of 18% or 21% in accordance with its respective category of income.
(4)Other income shall be filed and taxed at the rate of 20%.
(5)Where a trust deed is set up by a profit-seeking enterprise, the beneficiary shall be taxed at the rate of 20% on the value of his/her entitlement to the trust in the year of establishment, and a newly replaced beneficiary shall be taxed in the year of replacement. Furthermore, the beneficiaries shall be taxed at the rate of 20% on the increased part of the value of their entitlements when the enterprise makes the addition of an increment to the trust fund.
(6)For non-residents who stay in the R.O.C. over 90 days within a taxable year, remunerations paid by employers outside the R.O.C. for services rendered in the R.O.C. shall be filed and taxed at the rate of 18%.

19. Tax credit for selling a residence and purchasing another one within 2 years
If a house or other property resided in by the taxpayer (hereafter called “former residence”) is sold by him/her and the gain from the sale is consolidated and taxed; and within a period of 2 years after the date of public registration of such sale, another house or other property is purchased and used as an owner-occupied residence at a price exceeding the selling price of the former residence, the taxpayer may claim a credit or a refund of the aforesaid income tax for the year in which public registration of such a purchase is completed. This provision shall also be applicable in the case where a taxpayer buys first and sells later.

20. Investment tax credit
(1)Taxpayers who invested in designated entities under Article 33 of the Statute for Encouragement of Private Participation in Transportation Infrastructure Projects may credit up to 20% of the price paid for the acquisition of the registered share certificates of the said entities against the individual income tax payable within 5 years starting from the year in which the two-year holding requirement is met.
(2)The credit in each year shall be limited to not more than 50% of individual income tax payable, with the exception that this limitation shall not apply to the credit in the final year.

21. The ways a resident shareholder can file for tax on dividends or profits of the year 1998 or after
When a company (or a cooperative) makes distribution on dividends or profits of the year 1998 or of the following years to its resident shareholder, the company should prepare a “Dividend Statement” for him/her to file his/her tax return. The resident could choose to incorporate the total amount of dividends and earnings into consolidated income to calculate the tax based on progressive income tax rates, and the tax payable may be offset by a tax credit of 8.5% of the total amount of the dividends and earnings (the credit ceiling set at NT$80,000 per year per income tax return).
The resident could opt to calculate the tax payable separately in accordance with the single tax rate of 28% on the total amount of the dividends and earnings. Such tax payable shall be aggregated to the consolidated income tax return, and the tax balance due (refund) amount shall be computed.

22. Paying taxes and obtaining tax refunds
(1)Ways of paying taxes:
Taxpayers can make payments at any local bank with a self-payment bill which is filled out by himself/herself or with a payment bill which is issued by the tax authority after assessment. Payment may also be made in cash at convenience stores if the tax due is NT$30,000 or less, or be made online at https://paytax.nat.gov.tw via a card reader with a Financial Chip Card. In addition, to encourage e-Filing, taxpayers who file their taxes online are entitled to pay taxes by their or their spouses’ (Taiwanese spouses also apply) credit cards issued by domestic financial institutions and have been signed up for this credit card service.
(2)Ways of obtaining refunds:
If the tax-withholding amount exceeds the tax payable, the overpaid amount will be refunded according to general procedures. Aside from refund checks, tax refunds may also be transferred directly into an existing New Taiwan Dollar denominated bank (post office) account belonging to the taxpayer, spouse, or dependents filing jointly.

23. Filing and payment of individual income tax via agent
(1)Filing in the year the alien leaves the R.O.C.:
An alien who intends to leave the territory of the R.O.C. and is not able to file his/her individual income tax return before leaving the R.O.C. shall appoint a Taiwanese citizen of qualified financial capacity to be the guarantor and fill out an “Agent Appointment and Acceptance” form before his/her departure. The agent shall be responsible for filing the alien’s tax return and paying tax in accordance with the law.
(2)Filing income in regard to securities investments:
In accordance with Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals, a foreign national investing in securities markets shall fill out an “Agent Appointment and Acceptance Form” for appointing a Taiwanese citizen with qualified financial capacity to be the agent obliged to file tax returns and pay taxes in connection with the securities investments in the R.O.C. The agent shall be responsible for submitting either the official guarantee approval or the individual income tax certificate issued by the National Taxation Bureau to the authorities when applying for exchange settlement of securities investment earnings.

24.Tax certification
(1)An alien shall obtain an income tax certificate from this Bureau before his/her departure or upon application for his/her exit permit or for a visa extension of stay.
(2)When an alien seeks to have the tax payment of Taiwan credited against the income tax which he/she is obliged to pay in accordance with the laws of his/her nationality, an official tax certificate of the R.O.C. is available upon request.

25. Penalties
(1)Late filing: Taxpayers shall be surcharged interest on the amount of tax payable. The interest shall be calculated on a daily basis at the interest rate quoted for postal savings for a one-year fixed deposit.
(2)Omission or misfiling: A fine of a maximum of twice the amount of the tax evaded.
(3)Failure to file: A fine of a maximum of three times the amount of the tax payable.
※ In the case where tax due of the taxpayer is additionally found by the tax authority within the assessment period, the taxpayer shall still be subject to payment of the tax owed and/or any penalty in accordance with the relevant regulations.

II. Individual Income Basic Tax
1. Individuals who have the obligation of filing an individual income basic tax return
(1)An individual shall file an individual income basic tax return in accordance with the Income Basic Tax Act unless his/her circumstances apply to any one or more of the conditions listed below:
A. Non-resident of the R.O.C. (staying less than 183 days within a taxable year in the R.O.C.).
B. An individual who does not apply for any investment tax credits in accordance with the law and does not have any amount within the scope of the provisions of any of the subparagraphs of Paragraph 1 of Article 12 of the Income Basic Tax Act in his/ her annual income tax return or current income tax return.
C. An individual whose basic income as calculated in accordance with Paragraph 1 of Article 12 of the Income Basic Tax Act is less than NT$7,500,000.
(2)Individuals who do not meet the conditions mentioned above shall file the individual income basic tax return.
(3)The Individual Controlled Foreign Company (CFC) Rules are enforced from January 1, 2023. If any member of the tax household directly or indirectly holds the shares or capital of a foreign affiliated enterprise in a low-tax country or jurisdiction, please refer to “Statement of The Shareholding of An Individual and of His/her Related Parties” to determine the applicability of Individual CFC Rules. If the individual and his/her related parties directly or indirectly hold 50% or more of the shares or capital of such a foreign affiliated enterprise, or have control over it, the individual shall file “Statement of The Shareholding of An Individual and of His/her Related Parties” (including the Attachment: The Organization Chart) and submit it with “Individual Income Tax Return of the Republic of China.” Where the individual, himself/herself, with his/her spouse or relatives within the second degree of kinship directly holds 10% or more of the shares or capital of such a CFC on December 31, 2025, or directly holds less than 10% of the shares or capital of a CFC that has incurred current-year losses which are intended to be deducted in subsequent years, or where there remain assessed losses of a CFC from prior years that have not yet been fully deducted, please fill out “Business Income Statement of a Controlled Foreign Company (CFC) for Individual” and submit it with related proof documents.

2. Individuals who should file jointly
In the case that the taxpayer, his/her spouse, and/or dependents, who shall file a joint consolidated income tax return in accordance with the Income Tax Act, have an amount of income, which includes any one or more of the conditions applying under the Income Basic Tax Act, he/she shall include any such amount in the return for the calculation of income basic tax.
3. The kinds of items included in the calculation of the amount of basic income
The following items are included in the calculation of the amount of basic income:
(1)Net income:
The net income is calculated in accordance with the Income Tax Act (please refer to the individual income tax return).
(2)Aggregated overseas income:
Income which is derived from sources outside the R.O.C. and is excluded from gross consolidated income, as well as income which is exempted in accordance with Paragraph 1, Article 28 of the Act Governing Relations with Hong Kong and Macau, including individual CFC business income. However, if the aggregate of the 2 aforementioned sources of income in a filing unit is less than NT$1,000,000, it may be excluded from the basic income; otherwise, it shall be filed in the full amount of the aggregate income mentioned above.
(3)Life and annuity insurance payments:
Insurance payments received by the beneficiary, on condition that the beneficiary and the proposer are not the same person and that the life insurance policy and annuities are contracted after this Act came into force. However, in the case of payment made upon the death of the insured person, the part of which aggregate of payments made in a filing unit is equal to or less than NT$37,400,000 may be excluded from the basic income in a calendar year.
(4)Income derived from transactions of securities:
A. Share certificates, certificates of entitlement to new shares, stock share payment certificates and documents of title to any of the securities issued or placed privately by a company that is not listed on the Taiwan Stock Exchange or the Taipei Exchange, except for those companies that have been approved by the central authority in charge of relevant enterprises as high-risk innovative startups and incorporated for less than 5 years.
B. Beneficiary certificates of privately-placed securities investment trust funds.
(5)Non-cash donations or contributions:
The amount of non-cash donations or contributions deducted from the gross consolidated income of the individual income tax return.
(6)Total amount of dividends and earnings:
A taxpayer chooses to compute the tax on the total amount of dividends and earnings    separately from his/her gross income with the single tax rate.
(7)The amount of income or deduction entitled to reduction, exemption, or deduction announced by the Ministry of Finance:
A. For an individual who, on or after January 1, 2022, invests in and acquires shares of a domestic startup company that has been established for less than 2 years in accordance with Article 23-2 of the Industrial Innovation Statute prior to its amendment on May 7, 2025, and whose holding period reaches 2 years in the taxable year 2025, the amount deducted from the individual’s consolidated income for the taxable year 2025 shall be included in the individual’s basic income for that year.
B. For an individual who, on or after January 1, 2022, invests in and acquires newly issued shares of a biotech and pharmaceutical industry not listed on the Taiwan Stock Exchange or the Taipei Exchange that has been established for less than the number of years specified in Paragraph 2 of Article 8 of the Act for the Development of Biotech and Pharmaceutical Industry, and whose holding period reaches 3 years in the taxable year 2024 or 2025, the amount deducted from the individual’s consolidated income for the year 2025 shall be included in the individual’s basic income for that year.
C. For an individual who, on or after June 2, 2023, invests in and acquires newly issued shares or capital contributions of a domestic, high-risk innovative startup company or limited partnership that has been established for less than 2 years, or invests in a project in accordance with Article 27-2 of the Development of the Cultural and Creative Industries Act, and whose holding or investment period reaches 2 years in the taxable year 2025, the amount deducted from the individual’s consolidated income for the year 2025 shall be included in the individual’s basic income for the same year.
D. Where an individual invests in a venture capital limited partnership that meets the requirements set forth in Paragraph 1, Article 23-1 of the Industrial Innovation Statute, the profit-seeking enterprise income of such partnership for fiscal year 2025 shall, pursuant to Paragraph 3 of the same Article, be apportioned to the individual partners as profit-seeking income attributable to securities transaction income as defined under Article 4-1 of the Income Tax Act. Among such profit-seeking income, those sourced from the disposal of shares, certificates of entitlement to new shares, certificates of payment, and documents of title to shares issued or privately placed by companies not listed on the Taiwan Stock Exchange or the Taipei Exchange, shall be included in the individual’s basic income for that year. However, where the said company has been approved by the central competent authorities in charge of the relevant industries as a domestic high-risk innovative startup and has been incorporated for less than 5 years at the time of the transaction, such income shall be exempt from inclusion.
※ The loss arising from the difference between the exchange rate on the distribution date of CFC’s dividends and the exchange rate used in previous years for calculating CFC business income may be deducted from the basic income for the distribution year, but the deduction is limited to reducing the basic income to zero. The loss refers to the difference between the dividends or surplus earnings included in the basic income of the previous year and the actual amount distributed, which results from the difference in exchange rates on the distribution date and the rate used to calculate the abovementioned business income in accordance with Paragraph 2 of Article 9 of the CFC Rules.

4. The way in which the amount of basic tax is computed
For filing an income basic tax return, a taxpayer shall subtract NT$7,500,000 from the amount of basic income and then multiply the remainder by 20% to generate the amount of basic tax.

5. The way in which the amount of regular income tax is computed
The amount of regular income tax is equal to tax payable of the individual income tax return, minus investment tax credit for the tax payable. If a taxpayer chooses to compute the tax payable on the total amount of dividends and earnings separately from his/her gross income with the single tax rate, such tax payable shall be aggregated into regular income tax.

6. The principles underlying the income basic tax
In the case that the amount of regular income tax for an individual is greater than or equal to the amount of basic tax, the income tax of the current year for the said individual shall be calculated in accordance with the Income Tax Act and other relevant laws; whereas in the case that the amount of regular income tax is less than the amount of basic tax, the amount of income tax payable shall also include the balance between the amount of basic tax and regular income tax, in addition to the amount as calculated in accordance with the Income Tax Act and other relevant laws.

7. The principles underlying the tax credit for overseas tax payment
(1)In the case where income tax has been paid on overseas income in accordance with the laws of the source country of that income, such tax paid may be credited against the basic tax, to the extent that such tax credit shall not exceed the amount of basic tax which is increased in consequence of the inclusion of such income. When a taxpayer applies for tax credit as described in the preceding, he/she shall present the evidence of tax payment issued by the tax office, the overseas tax payment receipt, and relevant documents of the said source country for the same assessment year.
(2)Where an individual receives dividends or surplus earnings from CFCs, the income tax on such dividends or surplus earnings paid in accordance with the tax laws of the source jurisdictions can be credited against the amount of basic tax for the year in which these dividends or surplus earnings are calculated as CFC business income and included in the individual’s basic income. An individual shall apply for the aforesaid tax credit within five years since the date after the deadline of the filing period of the year in which such CFC business income is included in the individual’s basic income, and any overpaid tax is refundable, to the extent that the tax credit shall not exceed the increase in the basic tax amount due to the inclusion of such CFC business income.
8. Filing procedure
Please attach the individual income basic tax return to the individual income tax return.

III. Individual House and Land Transactions Income Tax
1. Individuals who should file individual house and land transactions income tax
From July 1, 2021, an individual who has any income derived from transactions of house, land, the house utilization right, presale house, and shares or capital that meet certain conditions which comply with any one of the following conditions, shall file an individual house and land transactions income tax return in accordance with the Income Tax Act:
(1)The transferred house, the share of land associated with the house, or any land for which a construction permit may lawfully be issued are acquired on or after January 1, 2016.
(2)The transferred right of using a house by creation of superficies are acquired on or after January 1, 2016.
(3)The transactions of the right or the presale house with its building location are acquired on or after January 1, 2016.
(4)The transactions of the shares or capital for any individual or profit-seeking enterprise directly or indirectly holding more than half of the total number of shares or the total amount of capital of an enterprise within or outside the R.O.C., where at least 50% of the value of such shares or capital are constituted by house and land within the territory of the R.O.C.; however, such case shall not apply if the transactions of the shares are those of companies on the Taiwan Stock Exchange, Taipei Exchange, or the Emerging Board.

2. The way to compute the house and land transactions income and taxable income
(1)The amount of house and land transaction income
A. Acquisition at a price:
The amount of house and land transaction income = the transaction price – the original cost – all expenses necessary for acquisition, improvement, and ownership transfer of that house and land.
B. Acquisition through inheritance or gift:
The amount of house and land transaction income = the transaction price – the current value of the house and the assessed present value of land at time of inheritance or gift (which shall be duly adjusted with the price index announced by the government) – all expenses necessary for acquisition, improvement, and ownership transfer of that house and land.
The transaction income of house utilization right or presale house with its building location or shares or capital that meet certain conditions = the transaction price – the market value calculated according to Estate and Gift Tax Act at time of inheritance or gift – all expenses necessary for acquisition, improvement, and ownership transfer of that house and land.
(2)Taxable income
Taxable income = the amount of house and land transaction income – loss from transactions of house and land within three years – the amount of land value increment calculated in accordance with the Land Tax Act.

3. Tax rate
(1)Residents of the R.O.C.

※The tax preference for transaction of owner-occupied house and land: The house and land held by an individual, his/her spouse, or their minor children which comply with the following conditions:
A. The individual, his/her spouse, or their minor children have resided, maintained their household registration at the owner-occupied house, and have owned the house for 6 consecutive years.
B. The house and land have never been used for lease, business operation, or professional practice in the last 6 years before its sale.
C. The individual, his/her spouse, or their minor children have never applied for the preference in the previous 6 years.
(2)Non-Residents of the R.O.C.

4. Filing procedure
An individual who has income or losses derived from transactions of house and land, regardless of the taxable amount, shall file every transaction separately, and not consolidate the income with the gross consolidated income. Taxpayers shall file house and land transaction income tax to the tax collection authority within 30 days from the following day of the day on which the ownership transfer registration of house and land is completed, or the transaction day of the right to use a house by creation of superficies, attached with the payment receipt, a photocopy of the contract, and relevant documents.

5. Penalties
(1)Failure to file within the time limit: A fine in the amount of more than NT$3,000 but not more than NT$30,000 shall be imposed. In the case of failure to file tax, and the amount of taxable income and tax payable are determined by the tax collection authority based on the available data, the taxpayer shall be subject to a fine of not more than 3 times the amount of tax determined as payable. However, the tax collection authority will choose the more severe one between the aforementioned fines as the final punishment.
(2)Filing on time but late payment: A delinquency charge in an amount equal to 1% of the amount of tax payable shall be charged for every 3 days of delay. When the period of delay exceeds 30 days, the case shall be referred to the Administrative Enforcement Agency for enforcement.
(3)Omission or misfiling: A fine of a maximum of twice the amount of the tax evaded.
Aliens who have any queries related to the filing of an individual income tax return that are not fully answered in this brochure are welcome to call or pay a visit in person to the Foreign Taxpayer Service Section of this Bureau for further information.
Address: No. 2, Sec. 1, Zhonghua Rd., 108459 Taipei City, R.O.C.
Tel: (02) 2311-3711 Ext. 1116, 1118.
Should the English translation of these instructions differ from the Chinese text of the relevant laws, the Chinese text shall govern.