Expatriate tax ebook - Taiwan
Facts and figures
Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation
Pre arrival procedures
Expatriates who require a work visa must apply for this before taking up employment in Taiwan. It is, therefore, important that the expatriate’s employment contract and benefit package is structured in a tax-efficient manner before the contract is submitted to the immigration department.
Employment visas
Expatriates taking up employment in Taiwan must apply for an employment visa before commencing employment. The immigration department places emphasis on the education level and skills of the expatriate and the economic benefit to Taiwan that the expatriate's employment will bring.
If the expatriate’s spouse and dependent family relocate to Taiwan they will require dependent visas. Spouses entering Taiwan on dependent visas are not normally allowed to take up employment in Taiwan. They must apply for a separate employment visa if they wish to work in Taiwan.
Tax year
The Taiwanese tax year runs from 1 January to 31 December.
Tax returns and compliance
Expatriates have to file an individual tax return each year, normally by 31 May.
Income tax rates
Tax is charged on net assessable income less a special deduction from salaries and wages, allowable deductions, standard deductions or itemised deductions and personal exemptions at the following rates:
|
2007 (NT$) |
Rate (%) |
Progressive difference |
|---|---|---|
|
0 – 410,000 |
6 |
0 |
|
410,001 – 1090,000 |
13 |
28,700 |
|
1090,001 – 2,180,000 |
21 |
115,900 |
|
2,180,001 – 4,090,000 |
30 |
312,100 |
|
Remainder |
40 |
721,100 |
Personal allowances – 2007
Taxpayers in Taiwan are entitled to the following allowances:
|
(NT$) | |
|---|---|
|
Standard deduction – single |
46,000 |
|
Standard deduction – married, filed jointly |
92,000 |
|
Personal exemption – taxpayer, spouse, dependents |
77,000 per person |
|
(NT$) | ||
|---|---|---|
| Total annual salary |
1,300,259 | |
| Less : exemptions and deductions | ||
| Exemptions |
462,000 | |
| Standard deductions |
92,000 | |
| Wage deduction |
78,000 | |
| Total exemptions and deductions |
632,000 | |
| Net taxable income |
668,259 | |
| Tax rate |
13% | |
| Less: progressive difference |
28,700 | |
| Tax payable |
58,174 | |
Information about Taiwan:
Last updated 5 August 2008
This information has been provided by Grant Thornton Taiwan, a member firm within Grant Thornton International Ltd, and is for informational purposes only. Neither Grant Thornton Taiwan nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.
Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by the member firms.
Disclaimer
Contact us
For further information on expatriate tax services in Taiwan please contact Jay Lo.