FAQ - Salary, Taxes and Rights

  • Q1: What is salary and wages income?

    Salary and wages mean all income received for services rendered or work performed, including salaries, remunerations, wages, allowances, annuities, bonuses and/or any other similar subsidies or compensations. Only for non-R.O.C. residents staying in the R.O.C. for not more than 90 days within a taxable year, will remunerations paid by employer(s) outside the R.O.C. not be deemed as R.O.C. source salary/wages income.

  • Q2: What is included in average monthly salary?

    Average monthly salaries include both "regular" and "non-regular" income. Regular income includes basic pay, professional allowance, monthly-based bonuses and fixed compensations or voucher values for rent, utilities, transportation, rooms and boarding. Non-regular income includes overtime payments, non-monthly-based bonuses or allowances such as for the three main national holidays, special bonus for leaves, and meal compensations.

  • Q3: What are the salary restrictions for foreign professional workers?

    The salary shall be no less than the average monthly wage of at least NT$47,971 as newly published by Council of Labor Affairs for professional and technical positions in industrial and service businesses. However, this salary restriction does not apply to foreigners under the following circumstances:
    I. Foreigners who are hired by a public or registered private college or above or an academic research institution to work as a full time research project assistant and earn no less than the amount specified on the National Science Council's reference table or salaries for full-time research project assistants each month.
    II. Foreign students or overseas Chinese students who have acquired a bachelor's degree or higher from a public or registered private college in Taiwan has been subject to the scheme of New Scoring Criteria since July 2014.

  • Q4: Can the average monthly salary per person for foreigners hired to perform specialized technical jobs be below NT$47,971?

    The average monthly salary per person for foreigners hired to perform specialized technical jobs may not be below NT$47,971. However, this rule is exempted under any one of the following circumstances:

    1. The monthly remuneration received by full-time research assistants hired for special research projects at national universities, registered private universities, or higher educational institutions or other academic research institutes matches or exceeds the amount specified for a worker with a bachelor's or master's degree and one year tenure in the Remuneration Table for Full-Time Research Assistants in NSC Research Project Funding Program.

    2. According to the order Lao-Zhi-Guan-Zi. No. 1010512093 made by the Ministry of Labor (the former National Labor Affairs Council prior to restructuring) on June 14, 2012, the average monthly salary is above NT$37,619 for those who obtain the employment permit extension.

    3. Those who meet the qualifications under the Points System as mentioned in Paragraph 1 of Article 5-1 of the "Qualifications and Criteria Standards for foreigners undertaking the jobs specified under Article 46.1.1 to 46.1.6 of the Employment Services Act."

  • Q5: When are foreigners required to file their income tax returns in the Republic of China (R.O.C.)?

    As the duration within a taxable year (from January 1st to December 31st) that foreigners stay in the R.O.C. varies, the following three points can be used as a guide for foreigners' reference to file their income tax returns:

    1. 1. For foreigners staying in the R.O.C. for less than 90 days, the income derived from sources in the R.O.C. shall be withheld according to the withholding tax rate and paid at the respective sources. The taxpayer need not file an income tax return. However, if one has income gained from property transactions, occasional trade, etc., he/she should declare and pay tax prior to departure. For those who remain in the R.O.C. through May 31st of the current year, they are supposed to file their last year's income before the said time.
    2. 2. For foreigners who stay in the R.O.C. over 90 days, but less than 183 days, the income derived from sources in the R.O.C. shall be withheld according to the withholding tax rate and paid at the respective sources. However, incomes derived from overseas earned through providing services in Taiwan will have to be reported prior to departure. For those who remain in the R.O.C. through May 31st of the current year, they are supposed to file their last year's income before the said time.
    3. 3. Foreigners staying in the R.O.C. equal or more than 183 days in one calendar year will be required to file their annual income for the previous year to the Tax Bureau and pay the corresponding taxes during the period from May 1st to May 31st of the current year. However, those leaving the country in the middle of the year will be required to file income earned in that year prior to departure.

    The mandatory time of filing individual income tax returns for the preceding fiscal year is from May 1st to May 31st (if May 31st falls on Sunday, national holiday or any other holiday, the due day extends to the next workday). The National Taxation Bureau of Taipei, Ministry of Finance, calls on all foreigners who need to pay taxes to file their tax returns as soon as possible to avoid the crowds at the last minute.

  • Q6: What would happen if a foreigner does not file income tax?

    A foreigner should file his/her income tax if he/she has R.O.C. source income. Foreigners no longer need a tax certificate issued by tax authorities in accordance with the revised Immigration Act for leaving the territory of the R.O.C. In case a foreigner fails to file their income tax return, such taxes will be charged a penalty rate of a maximum of three times the amount of the tax payable and the tax authorities will inform the National Immigration Agency to deny exit clearance to the foreigner in accordance with the stipulation of Paragraph 2, Article 72 of the Income Tax Act of the R.O.C.

  • Q7: Where should foreigners file their income tax returns?

    Foreigners should file their income tax returns and pay their corresponding taxes to the district National Taxation Bureau (based on the address on their Alien Resident Certificate, hereafter shortened as ARC). Foreigners in Taipei or Kaohsiung City are required to file income tax returns and pay corresponding taxes to the head office of the National Taxation Bureau of Taipei or Kaohsiung. Foreigners living in the rest of the country are required to file tax returns at the responsible branch or office of the National Taxation Bureau.

  • Q8: If foreign corporations assign foreign workers to implement the contracts of business and technological cooperation, shall the salaries subject to R.O.C.’s individual income tax?

    Based on Item 3, Paragraph 1, Article 8 of the Income Tax Act of the R.O.C., if an alien stays in the Republic of China for more than 90 days during a taxable year, the remuneration he/she receives from his/her employer(s) outside of the R.O.C. for services rendered within the territory of the R.O.C. shall be considered as R.O.C.-sourced income and he/she should file income tax return.

  • Q9: How do foreigners, who stay in the R.O.C. over 90 days in the taxable year, file their income tax returns for income derived from foreign employers for service rendered in the R.O.C.?

    Taxpayers must file income tax returns for remuneration paid by their employers outside the R.O.C for services rendered in the R.O.C. during their stay.

    Taxpayers should also submit relevant certificates of earnings issued by tax authorities, a Certified Public Accountant (CPA), or a notary public. Furthermore, a photocopy of the license of the CPA or the notary public who issues the certificate ought to be submitted to the tax authorities for review. The above-mentioned remunerations should be calculated at the average foreign currency exchange rate.

  • Q10: What is the difference between “residents of the Republic of China” and “non-residents of the Republic of China ” regarding the Income Tax Act of the R.O.C.?

    The following two categories of individuals are regarded as "residents of the Republic of China":

    1. 1. An individual who has registered residence with the Household Registration Office and meets one of the following requirements:
      1. (1) Who stays in the R.O.C. for 31 days or more in a calendar year.
      2. (2) Who stays in the R.O.C. for 1 day to 30 days in a calendar year, and is the center of vital interests for personal and economic relations is in the R.O.C.
        To meet the criteria "the center of vital interests for personal and economic relations", family and social relations, the occupations, the political, cultural or other activities, the place of effective business and property management, etc., the following reference principles should be considered:
        1.  Who is eligible for social welfare, such as national health insurance, labor insurance, national pension insurance or farmer insurance, etc.
        2.  Who has spouse or children under 20 years old living in the R.O.C.
        3.  Who runs businesses, provides professional services, administers properties, renders services, or is appointed to be the director, supervisor, or manager in the R.O.C.
        4.  Other proof of being the center of vital interest for personal and economic relations is in the R.O.C.
    2. 2. An individual who has no Household Registration in the R.O.C. but stays for 183 days or longer is regarded as an R.O.C. resident.

     

    Individuals not falling into the above-mentioned categories are regarded as "non-residents of the Republic of China".

  • Q11: How shall R.O.C. residents and non-R.O.C. residents file their annual income tax returns?

    R.O.C. residents deriving income from R.O.C. sources, including remunerations paid by employers outside the R.O.C. for services rendered in the R.O.C., must file their income tax returns before departure or file annual income tax returns for the previous year from May 1 st to May 31rd in the current year.

    Income tax returns must be submitted to the tax authorities. Their income tax shall be declared and assessed by a progressive rate based on net consolidated taxable income, which shall be the annual gross consolidated income minus the exemptions and deductions.

    For non-residents of the R.O.C., the income derived from sources in the R.O.C. shall be withheld according to the withholding rate and paid at the respective sources.  However, if non-residents of the R.O.C. have income which not subject to withholding, such as income from property transaction, occasional trade, interest form mortgages, etc., he/she should declare and pay tax prior to departure. In addition, a non-resident of the R.O.C. staying in the R.O.C. over 90 days in a taxable year and whose remuneration paid by employers outside the R.O.C. for services rendered in the R.O.C. need to file income tax return in accordance with the proper withholding tax rate.

  • Q12: What documents or certificates should be submitted to claim an exemption for a spouse or dependents? May a foreign resident of R.O.C. claim exemption for a spouse or dependents that do not live in the R.O.C?

    To claim exemptions for a spouse or dependents, a foreigner should submit the following documents:

    1. 1. Spouse:
      1. (1) The spouse's personal data - such as a photocopy of passport, birth certificate, or a photocopy of ARC.
      2. (2) Documents stating their relationship - such as a photocopy of marriage certificate or  notarized documents issued by local or foreign government agencies.
      3. (3) Living certificates - such as notarized documents, household registration certificate or other documents that prove the spouse was living during the related fiscal year.
    2. 2. Lineal ascendants who are having attained 60 years old or under 60 years old but incapable of earning a livelihood by themselves:
      1. (1) The lineal ascendants' personal data - such as a photocopy of passport, birth certificate, or a photocopy of ARC.
      2. (2) Documents stating their relationship - such as birth certificate, household registration certificate.
      3. (3) Proof of support - such as remittance certificate or notarized documents.
      4. (4) Living certificates - such as notarized documents, household registration certificate or other documents that prove the lineal ascendants were living during the related fiscal year.
      5. (5) Ascendants who are under 60 years old but incapable of earning a livelihood by themselves should submit certificates issued by public hospitals or local government agencies' notarized documents.
    3.  3. Children or siblings who are under 20 years old, having attained 20 years old and still attending school, or physically or mentally disabled:
      1. (1) The children's or siblings' personal data - such as a photocopy of passport, birth certificate, or a photocopy of ARC.
      2. (2) Relationship documents - such as birth certificate, household registration certificate.
      3. (3) Proof of support - such as remittance certificate or notarized documents.
      4. (4) If the taxpayer's children or siblings are having attained 20 years old, items for at least one of the following categories also need to be submitted:
        1. Certificate of being at school: A certificate issued by colleges or universities which have been approved by the Ministry of Education of the R.O.C., or a photocopy of a student's identity card, or a photocopy of a diploma of graduation, or a receipt of tuition being paid.
        2. Certificate of being mentally or physically disabled: A certificate from a recognized diagnostician of the R.O.C. or a photocopy of a Registered Handicapped Person's Certificate of the R.O.C.
        3. Certificate of being incapable of earning a livelihood: Documents certified by foreign or local national/public hospitals or governments. 
      5. (5) Living certificates - such as notarized documents, household registration certificate or other documents that prove the children or siblings were living during the related fiscal year.

     

    1. 4. Other dependents who are under 20 years old or having attained 20 years old but incapable of earning a livelihood by themselves due to school attendance, physical (mental) disability, or other specified reasons, receiving financial support from the taxpayer living in the same residence:
    2. (1) Other dependent's personal data - such as a photocopy of passport, birth certificate, or a photocopy of ARC.
    3. (2) Documents stating their relationship - such as birth certificate, household registration certificate.
    4. (3) Proof of the support - such as remittance certificates or notarized documents.
    5. (4) If the dependents are having attained 20 years old, items for at least one of the following categories also need to be submitted:
      1. Certificate of being at school: A certificate issued by colleges or universities which have been approved by the Ministry of Education of the R.O.C., or a photocopy of a student's identity card, or a photocopy of a diploma of graduation ,or a receipt of tuition being paid.
      2. Certificate of being mentally or physically disabled: A certificate from a recognized diagnostician of the R.O.C. or a photocopy of a Registered Handicapped Person's Certificate of the R.O.C.
      3. Certificate of being incapable of earning a livelihood: Documents certified by foreign or local national/public hospitals or governments. 
    6. (5) Living certificates - such as notarized documents, household registration certificate or other documents that prove the other dependents were living during the related fiscal year.
    7. (6) Household registration certificate or notarized document which shows they are actually living together. A notarized declaration certifying that he/she is supported by the taxpayer or other appropriate documentation may be requested.

    Only foreign residents of the R.O.C. may claim exemptions for a spouse or dependents (excluding other dependents, i.e. aunt, uncle, cousin, grandchild, nephew or niece) who are not in the R.O.C., if they submit the above-mentioned required certificates.

  • Q13: How does a foreign resident of the R.O.C. calculate his/her tax payable? What exemptions and deductions can foreign resident claim when calculating his/her income tax?

    The income tax for a resident of the R.O.C. shall be computed by a progressive rate on his or her net consolidated income which shall be the annual gross consolidated income minus the exemptions and deductions. The exemptions and deductions for the fiscal year of 2016 are stated as follows:

    1. 1. Exemptions: There is an NT$85,000 exemption for each person (including taxpayer, his or her spouse and dependents). In case the taxpayer, his or her spouse and their lineal ascendants have attained 70 years of age, the exemption is NT$127,500.
    2. 2. Deductions: Foreigners can claim either standard deduction or itemized deductions and special deductions.
      1. (1) Standard deduction: There is a NT$90,000 deduction for a single person in the filing of income tax returns and an NT$180,000 deduction for a married couple filing a joint return.
      2. (2) Itemized deductions (original receipts or documents should be attached according to the tax law). There are 6 items included:
        1. Donation: The deduction shall not exceed 20 percent of the taxpayer's consolidated gross income. However, donations made to national defense, military or to the government and ancients are fully deductible.
        2. Personal insurance premiums: The insurance premiums for life insurance of the taxpayer, his/her spouse and lineal dependents could be claimed. Both the insured and the applicant shall file the return jointly, and the deduction shall not exceed NT$24,000 for each insured per year. (No limitation for National Health Insurance payments.) 
        3. Medical and maternity expenses: Deductions can be claimed following the related law or regulations.
        4. Losses from disaster: Deductions can be claimed following the stipulated law or regulations.
        5. Mortgage Interest paid on a loan for an owner-occupied residence: Under the conditions that the residential house entitled for the deduction is to be located within the territory of the R.O.C., and that the deduction shall not exceed NT$300,000 for only one house each year. However, in the case that the taxpayer also claims his/her interests as a special deduction for savings and investment, such special deduction shall be subtracted from the above-mentioned interests.
        6. Rental expense: Rental paid for houses in the R.O.C., purely for the taxpayer, his or her spouse and lineal dependents residence, rather than those used by business for profit is deductible. The maximum deduction for rental expense is NT$120,000 for each annual tax return. There is no deduction for individuals who have filed “Mortgage interest paid on a loan for an owner-occupied residence”.
      3. (3) Special deductions:
        1. Losses from property transactions: Deductions shall not exceed the gains from property transaction filed for the same year.
        2. Special deduction for salary or wages: Each person may claim a deduction for his or her salary only up to a maximum of NT$128,000 in filing the tax return.
        3. Special deductions for savings and investment: Deductions for each household shall not exceed NT$270,000 per year.
        4. Special deduction for disability: Deduction for each disabled person (R.O.C. authority registration required) is NT$128,000 in filing the tax return .
        5. Special deduction for tuition: For each annual return, the maximum deduction for tuition fee is NT$25,000 for each child attending college or university.
        6. Special Deduction for Pre-School Children: Starting from 2012, for a taxpayer who has children under or equal to 5 years of age, and his or her circumstances is in compliance with applicable laws , the amount of the deduction for pre-school children is NT$25,000 per child per year.

    In the case that a foreign resident of the R.O.C. departed and did not return during a taxable year, the amounts for exemptions and standard deduction shall be calculated in proportion to the length of stay in the R.O.C. during that year.

    The table of progressive tax rates for the year of 2016 (Unit: NT$)

    The table of progressive tax rates for the year of 2015 and 2016 (Unit: NT$)
      Net Taxable Income x Tax Rate - Progressive Difference = Tax Payable
    1 0 - 520,000 x 5% - 0 = Tax Payable
    2 520,001 - 1,170,000 x 12% - 36,400 = Tax Payable
    3 1,170,001 - 2,350,000 x 20% - 130,000 = Tax Payable
    4 2,350,001 - 4,400,000 x 30% - 365,000 = Tax Payable
    5 4,400,001 -10,000,000 x 40% - 805,000 = Tax Payable
    6 10,000,001 and above x 45% - 1,305,000 = Tax Payable
  • Q14: If a R.O.C. citizen is married to a foreigner, where should they file their income tax return?

    When they file their income tax return jointly, if the taxpayer is R.O.C. citizen, he/she should file to the National Taxation Bureau where he/she is domiciled. And if the taxpayer is foreign resident, he/she should to the National Taxation Bureau based on the address on his/her ARC. Those foreign taxpayers residing in Taipei City should file taxes to the Foreign Taxpayers' Section, National Taxation Bureau of Taipei at No. 2, Sec. 1, Zhonghua Road, Taipei City.

  • Q15: Should a couple file their income tax returns jointly? If a couple gets married or divorced during the interim of the year, how should they file their taxes? How do they calculate their tax payable?
    1. 1. Article 15 of the Income Tax Act stipulates that the income of a married couple must be filed jointly except when the married couple could hardly maintain their common living, and have not lived together for more than 6 months conforming to Paragraph 2, Article 1010 of the Civil Code, or do not continue their cohabitation for more than 6 months, or one of the married couple have obtained an ordinary protection order conforming to Article 1089-1 of the Civil Code. However, the tax due on the spouse's salary or categorized income may be chosen to be calculated separately. In the case of husband and wife living in different areas, either the husband or the wife can be the taxpayer and file the income tax return jointly at his/her district National Taxation Bureau.
    2. 2. For any non-resident having R.O.C. source income and whose spouse is a resident of the R.O.C., the non-resident may choose to file income tax return jointly with the spouse or file his/her own income at the tax rate of non-R.O.C. residents. If the non-resident chooses to file separately, his/her income should not be included in the consolidated income of the resident spouse. Also, the tax withheld and the tax due paid by non-R.O.C. resident cannot be credited by the resident spouse and no exemption and deduction can be claimed when calculating the resident spouse's tax due.
    3. 3. In the case that a couple get married or divorced during the interim of the year, they may choose to file income tax returns separately only for that related fiscal year. Presentation of a certificate of marriage or divorce is required at the time of filing. Further, double claiming is not permitted; the couple should determine which party may claim the related dependent's exemption(s); otherwise, such exemptions should be claimed by the person who actually provides financial support.

    A foreign resident of the R.O.C. should file the gross consolidated incomes of him/herself, his/her spouse and his/her dependents jointly, unless the married couple could hardly maintained their common living, and have not lived together for more than 6 months conforming to Paragraph 2, Article 1010 of the Civil Code, or do not continue their cohabitation for more than 6 months, or one of the married couple have obtained the ordinary protection order conforming to Article 1089-1 of the Civil Code. However, a taxpayer shall choose one of the ways listed below to calculate the tax payable:

    1. 1. A taxpayer may choose to calculate the tax payable on any categories of income jointly with his/her spouse and dependents.
    2. 2. A taxpayer or his/her spouse may choose to calculate the tax payable on the salary income separately, while on the remaining categories of income jointly with the other spouse and their dependents. In this case, only the tax exempt amount and the special deduction for salary or wages as specified in Article 17 of the Income Tax Act may be deducted from the corresponding salary income computed separately; whereas all other exemptions and deductions applicable to that person shall be declared jointly with the other spouse and their dependents in the same tax return. The taxpayer may not make a duplicate claim for an exemption or special deduction for the salary or wages while computing the amount of income tax payable.
    3. 3. A taxpayer or his/her spouse may choose to calculate tax payable on any categories of income separately from the other spouse and dependents. In this case, only the tax exempt amount, the special deduction of property transaction losses, the special deduction of income from salary and wage, the special deduction of savings and investment, and the special deduction of disability as specified in Article 17 may be deducted from the income of the person whose income are computed separately; whereas all the other eligible exemptions and deductions applicable to that person shall be declared jointly with the other spouse and their dependents in the same tax return. In computing the amount of special deduction of saving and investment, the deduction is limited to NT$270,000 and shall be first applied to the income of the person and the dependents whose income is not computed separately. The balance of unused deduction, if any, may be applied to the relevant income of the person whose income is computed separately.

     

    Since different taxpayers have different sources of income, and deductible items/amounts. Taxpayers may compare the different formulas to decide which method should be applied. However, in general, for couples with net taxable income of no more than NT$520,000, and at least one of the two has salary income, they would be recommended to file their income tax return jointly. Taxpayers may use the E-filing system to file the tax return, and the system will automatically choose the most favorable way to compute the tax payable.

  • Q16: What are the withholding tax rates for "non-residents of the R.O.C." ?

    The tax rate shall be as follows:

    1. 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 20%.
    2. 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 1st, 2009.
    3. 3. The withholding tax rate on commissions is 20%.
    4. 4. The withholding tax rate on interest is 20%. However, the kinds of interest listed below shall be withheld in accordance with the associated regulations:
      1. (1) 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%.
      2. (2) 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%.
      3. (3) The interest accrued from government bonds, corporate bonds and financial bonds shall be withheld by 15%.
      4. (4) 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. 5. The withholding tax rate on rentals is 20%.
    6. 6. The withholding tax rate on royalties is 20%.
    7. 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$2,000 from lottery tickets or uniform invoices issued under the auspices of the government.
    8. 8. The withholding tax rate on the remuneration to a professional practice is 20%.
    9. 9. After deducting any regulated exemption, retirement payments or pensions shall be withheld at the rate of 18%.
    10. 10. The withholding tax rate on payment of reward for information or accusation is 20%.

    Additionally, income which does not fall within the withholding scope shall be filed and taxed in accordance with the following:

    1. 1. Income from property transactions shall be filed and taxed at the rate of 20%.
    2. 2. Profits from occasional trade shall be filed and taxed at the rate of 20%.
    3. 3. In the case of income from the transfer of tax-differed 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 20%.
    4. 4. Miscellaneous income shall be filed and taxed at the rate of 20%.
    5. 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 or her entitlement to the trust in the year of setting up, 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. 6. N-R.O.C. 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%.
  • Q17: How can a foreign taxpayer make a payment before the deadline stipulated by the Income Tax Act?

    If there is a tax balance due, a foreign taxpayer can make his/her payment through the following 3 ways:

    1. 1. A foreign taxpayer can fill in a form of payment of individual income tax or print out a payment slip from the e-Filing program or via the website at https://www.etax.nat.gov.tw and pay income tax by cash or check at any commissioned bank, except the post office. Payment may also be made in cash at convenience stores, such as, 7-Eleven, Family Mart, Hi-Life, and OK Mart if the tax due is no more than NT$20,000.
    2. 2. Tax payment also can be made by using a financial chip card (ATM card) at https://paytax.nat.gov.tw (details are available on that website) or following the procedure in e-Filing program.
    3. 3.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 only).

    Late payments can be made at convenience stores or by the financial chip card (ATM card) within 2 days after the due date without any surcharges. Otherwise, late payment cases can only be made at commissioned banks authorized by the R.O.C. government treasury, except the post office.

  • Q18: How does a foreign taxpayer apply for a tax refund? What can he/she do if he or she is not able to collect the refund check in person?

    After the National Taxation Bureau examines the income tax return as per the general examination procedure and determines he/she is due a refund, he/she shall receive a notification of refund.

    The taxpayer may also receive his/her refund via bank account. Deposit-able accounts are limited to transferable NT-dollar-accounts of the specified contractual banks with the Financial Information Service Co., Ltd or Taiwan Post Co., Ltd. The account shall belong to the taxpayer, or to the taxpayer's spouse or to a dependent in the case of a joint-filing, and shall have been opened with the title of an R.O.C. ID No. or an ARC No.

    In the case that the National Taxation Bureau (NTB) is unable to deposit such tax refund into the appointed bank account, the NTB will mail a notice to the taxpayer and issue a refund check instead.

    If a taxpayer cannot collect the refund check in person, or if he/she has left the country and has no valid bank account able to be deposited, he/she will then need to fill out an application to appoint an agent to collect the refund check or applying for a deposit-able transferring check.

    Photocopy of the page in the taxpayer's passport bearing his/her signature should be attached for reference in the aforementioned cases.

  • Q19: Can a foreign taxpayer’s native country’s income tax be credited to the R.O.C. income tax? Can his/her R.O.C income tax be credited to his/her native country’s income tax?

    The foreign taxpayer's native country's income tax cannot be credited to the R.O.C. income tax, as the R.O.C. Income Tax Act stipulates.

    Whether the R.O.C. income tax can be credited to the native country's income tax, the foreign taxpayer should inquire tax authorities in his/her native country to make this determination.

  • Q20: How is a foreign taxpayer’s Individual Income Tax Certificate applied if it is necessary for his/her native country’s income tax purposes?

    When a foreign taxpayer applies for an Individual Income Tax Certificate, he/she should show his/her passport or ARC to the National Taxation Bureau.

    If the foreign taxpayer cannot apply in person, his/her agent is required to show a proxy statement, affixed with the same signature as shown on the taxpayer's passport, and a copy of the said signature from the same passport which bears personal details. The ID card of the agent shall also be presented at the time of application.

  • Q21: What does “Taxpayer ID No.” mean? What is the issuing authority and how are the numbers compiled?
    1. 1. Since January 2nd, 2007
      1. (1) The Taiwan Area Resident Certificates are issued by the National Immigration Agency and bear the "Taxpayer ID No." for Hong Kong and Macau citizens, PRC nationals, and overseas Chinese.
      2. (2) ARCs are issued by the National Immigration Agency. They bear the "Taxpayer ID No." for foreign taxpayers who reside in Taiwan.
      3. (3) For foreigners or nationals without registered residence in Taiwan, they can apply for a "Taxpayer ID No." in person or by proxy to the National Immigration Agency by submitting their passports; Hong Kong and Macau citizens, PRC nationals, and Overseas Chinese can apply for the "Record of ID No. in the Republic of China" to the National Immigration Agency.
         
    2. 2. The "Taxpayer ID No." consists of two letters and eight numerals. The first letter is the area code; the second letter is compiled according to sex and issuing authorities, i.e., AB, CD; the third to ninth numerals are serial numbers; and the tenth number is the check number. The "ID No." is the code number printed on the ARC. For instance:
      1. (1) Mr. Robert W. Davison holds an ARC. The ID No. on his certificate is "AC12345678". This means his "Taxpayer ID No." is "AC12345678".
      2. (2) Ms. Carol Lee holds an ARC. The ID No. on her certificate is "HD12345678". This means her "Taxpayer ID No." is "HD12345678".
  • Q22: Who have the obligation of filing an individual income basic tax return?
    1. 1. An individual shall file an individual income basic tax return in accordance with the Income Basic Tax Act unless his/her circumstances do apply to any one or more of the conditions listed below:
      1. A. Non-resident of the R.O.C. (staying less than 183 days within a taxable year in the R.O.C.).
      2. B. An individual who does not apply for any investment tax credits in accordance with the laws 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.
      3. 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$6,700,000..
    2. 2. An individual whose circumstances does not apply to any one or more of the conditions mentioned above shall file an individual income basic tax return.
  • Q23: What 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. 1. Net taxable income: The net taxable income is calculated in accordance with the Income Tax Act (please refer to the individual income tax return).
    2. 2. 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. However, if the aggregate of the two 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. 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$33,300,000 may be excluded from the basic income in a calendar year.
    4. 4. Income derived from transactions of securities: Beneficiary certificates of privately-placed securities investment trust funds.
    5. 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.
  • Q24: What is the Individual House and Land Transactions Income Tax? Who should file Individual House and Land Transactions Income?

    1. From January 1st, 2016, income derived from house and land transactions should be filed separately, and not be consolidated with the gross consolidated income in accordance with the Income Tax Act.

    2. A foreign taxpayer who has any income derived from transactions of house and land, the share of land associated with a house or any land which can be issued a construction permit (hereinafter referred to as the "house and land") which comply with any one of the following conditions shall file an individual house and land transactions income tax return:

    (1) The transferred house and land are acquired on or after January 2nd, 2014, and have been held for a period of no more than 2 years.

    (2) The transferred house and land are acquired on or after January 1st, 2016.

    (3) The transferred right of using a house by creation of superficies are acquired on or after January 1st, 2016.

  • Q25: How to compute the amount of house and land transactions income and taxable income?

    1. The amount of house and land transaction income

    (1) 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.

    (2) 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 land value increment tax paid in accordance with the Land Tax Act shall be excluded from the expense.

    2. Taxable Income Taxable income = the amount of house and land transaction income - the amount of land value increment calculated in accordance with the Land Tax Act.

  • Q26: What is the tax rate on the income of house and land transaction?

    1. Residents of the R.O.C.:

    Conditions Tax Rate
    Holding periods No more than 1 year 45%
    More than 1 year but no More than 2 years 35%
    More than 2 years but no More than 10 years 20%
    More than 10 years 15%
    Conforming to the tax preference for transaction of self-use house and land 1. The amount of the exempt income:NT$4,000,000
    2. The amount of the taxable income exceeds NT$4,000,000:10%

    2.Non-Residents of the R.O.C.:

    Conditions Tax Rate
    Holding periods No more than 1 year 45%
    More than 1 year 35%

     

  • Q27: How to file the house and land transactions income tax? What documents shall be required for filing?

    1. 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 the income cannot be added to the gross consolidated income. Taxpayers shall file house and land transaction income tax to the tax collection authority of their tax return with 30 days from the day following 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.

    2. To file house and land transaction income tax, the taxpayer should submit the following documents:

    (1) Individual House and Land Transactions Income Tax Return Application Form

    (2) Payment receipt (if there is a tax due)

    (3) Photocopies of both the sales and purchase contracts

    (4) Proof of costs and expense(s)

    (5) Other relevant documents

  • Q28: What would happen if a foreign taxpayer fails to file house and land transactions income tax returns?

    The following items can be a simple guild to the questions above:

    (1) Failure to file within the time limit: A penalty in the amount of more than NT$3,000 but not more than NT$30,000. In case, there is tax payable, a penalty of a maximum of three times the amount of the tax payable but not less than the penalty of failure to file within the time limit.

    (2) Filing on time but late for paying: A delinquency charge in an amount equal to one percent of the amount of said tax shall be charged for every two days of delay. Where the period of delay exceeds thirty days, the case shall be referred to the Administrative Enforcement Agency for enforcement.

    (3) Omission or misfiling: A penalty of a maximum of twice the amount of the tax evaded.

  • Q29: How do foreigners to get more details if they have further inquiry?

    Foreigners who have any further queries can visit the website of National Taxation Bureau of Taipei at http://www.ntbt.gov.tw or make a phone call to (02) 23113711ext. 1116 or 1118.

  • Q30: What rights and obligations do foreigners have when they work in Taiwan?

    I. Observe the schedule of regular medical examinations:

    1. 1. Foreign professionals: Foreigners applying to work in Taiwan as teachers at supplementary language schools should submit a certificate of medical examination issued within the previous 3 months by hospitals designated by the governing agency, i.e. the Ministry of Health and Welfare of the Republic of China. If the certificate of medical examination is issued by a foreign hospital, it must be authenticated by the overseas representative office of the Republic of China.
    2. 2. Foreign Workers: Foreign workers shall undergo a medical examination arranged by employers in hospitals designated by the Department of Health of the Executive Yuan within 3 working days of arrival in Republic of China and within a period of 30 days before and after the expiry of 6 months, 18 months and 30 months..

     

    II. Apply for Alien Resident Certificate (ARC) within the prescribed time:

    Within 15 days upon arrival, foreigners holding a resident visa should bring relevant documents to a local service center of the National Immigration Agency to apply for an Alien Resident Certificate or entrust others to do so. Foreign workers are required to have fingerprint cards.

     

    III. Pay income tax on salary earned in Taiwan according to the following regulations:

    1. 1. If a foreign worker has resided in Taiwan for 183 days or more within a taxable year, their applicable tax rate will be 5% to 45%. If the employer is a withholding agent under the income tax law, a foreign worker may request that their tax rate of 5% be deducted from their monthly salary or deducted in accordance with the appropriate income tax withholding law; if the income paid to the individuals who request that 5% be deducted from the monthly salary does not exceed NT$2,000 or an annual salary not exceeding NT$40,000,, such withholding will be exempt. Individuals who request that income be withheld in accordance with the appropriate tax withholding law will be exempt from such withholding if his or her monthly salary, staring from 2016, does not exceed NT$73,000.
    2. 2. If a foreign worker who has resided in Taiwan for a period of less than 183 days, they are considered as a "non-resident" and their income tax will be withheld by their employer who is a tax withholding agent under the Income Tax Act. If a foreign worker's monthly income is equal to or lower than one and a half times of the monthly salary baseline salary as assessed by the Executive Yuan, 6% of the income will be withheld for income tax purposes. If their monthly income exceeds one and a half times of the monthly salary baseline salary, 18% of the income will be withheld for income tax purposes.
    3. 3. For any foreign worker in Taiwan employed as a domestic helper or caregiver, due to the fact that your employer is not a withholding agent under the Income Tax Act, whether or not they are a "resident" or a "non-resident", their employer may not act as a withholder. Foreign workers still need to, in accordance with your labor contract, compute their monthly income tax and declare accordingly.
    4. 4. If a foreign worker has resided in Taiwan for a period exceeding 90 days within one taxable year, they should file their income taxes. Filing of income tax for the current year should be done from May 1st to 31st of the following year. Those who will leave the country prior to the start of the time limit prescribed for filing income tax should file their income tax a week prior to their departure. If the filing is found to be eligible for a rebate, the tax bureau will issue a tax refund check in accordance with general refund procedures.
    5. 5. If a foreign worker reports their income as less than the actual amount, they will be fined no more than twice of the income tax shortage. If they do not file income tax according to the law, they will be fined no more than three times of the tax shortage.

    IV. A written labor contract should be drawn up in accordance with the regulation:

    The employer should sign a written contract with a foreign worker, and said contract must be of a fixed length of time. Those contracts not specifying a fixed length of time are limited by when the work permit expires. This also applies when renewing a contract. The contract should be in Chinese and also in translation using the mother language of the foreign laborer.

     

    V. How to join into and withdraw from the labor insurance program: (for details, please log on to the Bureau of Labor Insurance)

    1. 1. Joining the labor insurance program: A foreigner above 15 years and below 65 years of age and employed in a company or firm that employs more than 5 workers must be covered by the labor insurance program according to the "Labor Insurance Act." The employer should submit the foreign worker's employment permit issued by a responsible entity, and a photocopy of the worker's Alien Resident Certificate or passport to the Bureau of Labor Insurance in order to apply to join the labor insurance program. For those who are employed in a company or firm that employs less than 4 workers or foreign workers or who are hired by other industries, the employer may enroll them in Labor Insurance system voluntarily.
    2. 2. Withdrawing from the labor insurance program: The day the foreign worker's contract is due, or if the foreigner voluntarily leaves the job early, or transfers to another employer to finish out his or her term, the business institution or the employer should apply to the Bureau of Labor Insurance for the foreign worker's withdrawal from labor insurance coverage.

    VI. How to join into and withdraw from National Health Insurance (NHI) coverage: (for details, please link to the website of the National Health Insurance Administration, NHIA)

    1. 1. Join the NHI program: All foreign workers holding an Alien Resident Certificates should join the NHI program. The employer should apply for health insurance related matters to the local division of the NHIA within three days starting from the day when the laborer fits the qualifications for joining the insurance program.
    2. 2. Withdraw from the NHI program: Within three days starting from the day that the foreign laborer's contract is up, or the foreigner voluntarily leaves the job early or transfers to another employer to finish out his or her term, the foreign laborer should apply to the NHI to withdraw from insurance coverage.

    VII. Regulations of the working conditions as to the wage and working hours: (for detailed information, please visit the MOL website):

    1. Businesses covered by the "Labor Standards Act"

    If a foreigner is hired to work for businesses (manufacturing industry, construction industry, etc.) that fit the "Labor Standards Act", their wages, working hours, leave, overtime work, and terms of severance should be regulated in accordance with the "Labor Standards Act."
    Highlights of the existing related regulations are as follows:
    (1) Minimum wage: From Jan. 1, 2017, the monthly minimum wage is NT$21,009, and the hourly wage is NT$133.
    (2) Regular working hours: A worker's normal working hours should not exceed eight hours each day and the total working hours of every two-week period should not exceed 84 hours.
    (3) Overtime hours: A employer should not have their workers work for more than 12 hours a day, including regular working hours, and the total overwork time should not exceed more than 46 hours each month.
    (4) An employer shall pay worker overtime wages using the following basis:
         (a)When the overtime work does not exceed two hours, the worker shall be paid, in addition to the regular hourly wage, at least an additional one-third of the regular hourly rate.
         (b)When the overtime work is over two hours, but the total overtime work does not exceed four hours, the worker shall be paid, in addition to the regular hourly wage, at least an additional two-thirds of the regular hourly rate.
         (c)In accordance with Article 36, an employer shall pay a worker overtime wages when required to work on the rest days. When the overtime work does not exceed two hours, the worker shall be paid, in addition to the regular hourly wage, at least an additional one and one-third of the regular hourly rate. When the overtime work is over two hours, the worker shall be paid, in addition to the regular hourly wage, at least an additional one and two-thirds of the regular hourly rate.The time and wage computation are to be done using the following basis: When the overtime work does not exceed four hours, it shall be computed as four hours; when the overtime is in excess of four hours and under eight hours, it shall be computed as eight hours; when the overtime is in excess of eight hours and under twelve hours, it shall be computed as twelve hours.

     

    2. Businesses not covered by the "Labor Standard Act":
    If a foreigner is employed by businesses that do not fall under the "Labor Standards Act" (domestic helpers, household caretakers, etc.), terms regarding wages, working hours, leave and overtime work shall be regulated by the "labor contract" drawn up between the employee and the employer. The rights and obligations of foreign workers in Taiwan are administered by Ministry of Labor and the Overseas Community Affairs Council. For details, please refer to the website of the Ministry of Labor.
    Address: 9F, No. 83, Section 2, Yangping North Road, Datong District, Taipei City
    Telephone: +886-2-8995-6000

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