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¾ Tax on Nonresidents
An individual not domiciled in Taiwan and who stays in Taiwan
for less than 183 days in a calendar year will be deemed
a "non-resident". Income tax for non-residents, which is
generally collected through withholding at the source, is
typically at a rate of 20%. If there is income that is not within
the scope of withholding, the non-resident individual must
file a tax declaration on their own. If a non-resident individual
is in Taiwan for less than 90 days in a calendar year,
compensation received from a foreign employer for work
performed within Taiwan is exempt from income tax.

Individual Income Tax ¾ House and Land Transaction Income Tax System
An integrated housing and land tax system has been in effect
¾ Tax on Residents since January 1, 2016. Income earned from housing and land

An individual whose domicile is in Taiwan and who transactions after January 1, 2016 will be, in principle, taxed
regularly lives in Taiwan, or an individual whose domicile at different rates depending on how long the owner has held
is not in Taiwan but who has resided in Taiwan more the property. As a general rule, the longer the holding period,
than 183 days during the tax year, shall file an income the lower the applicable tax rate. Beginning July 1, 2021,
tax return between May 1 and May 31 (extended in the sale of pre-sale houses and the land on which they are
the case of holidays) detailing income, exemptions, located, as well as the transfer of real estate in the form of
and deductions for the filer and the filer's spouse and shares or capital investment, are included in the scope of
taxation. Applicable tax rates for transactions executed after
dependents during the previous year.
July 1, 2021, are as follows:
2024 Comprehensive Income Tax Resident Non-Resident
Quick Calculation Formula Time of Ownership Tax Rate Time of Ownership Tax Rate
Progressive 2 year or less 45% 2 year or less 45%
Tax Bracket€NT$ Tax Rate Between 2 and 5 years
Difference€NT$ 35Ĉ
0ä590,000 5Ĉ 0 Between 5 and 10 years 20Ĉ More than 2 year 35%
590,001ä1,330,000 12Ĉ 41,300 Houses transferred
1,330,001ä2,660,000 20Ĉ 147,700 because of non-
2,660,001ä4,980,000 30Ĉ 413,700 voluntary causes, built
in partnership with
4,980,001 or more 40Ĉ 911,700 other profit-seeking
Note: The maximum individual income tax rate is 40%. enterprises, or acquired
through participation 20Ĉ
¾ New taxation system for dividend income in urban renewal
A new taxation system for dividend income went or reconstruction in
accordance with relevant
into effect beginning January 1, 2018. Individual acts or statutes that
residents receiving dividends or earnings may select have been held for a
to either consolidate these earnings into their total period of Ù5 years
comprehensive income for tax calculation, and receive a More than 10 years 15%
tax credit of of 8.5% of the dividend amount (limited to a Owner-Occupied 10%
Residence
maximum of NT$ 85,000 for each reporting household),
or they may alternatively choose to calculate the tax ¾ Alternative Minimum Tax
dividend tax separately for this income at a rate of 28%. An individual who enjoys investment tax credits, has
overseas income, or claims a tax exemption shall include
¾ Calculation of salary income them in the basic income calculation. The basic tax will be
Beginning January 1, 2019, individual residents levied after a deduction of NT$ 7.5 million. If an individual is a
calculating their salary income, may either deduct a non-resident, or is a resident but has not been included in the
fixed special salary deduction from their salary earnings basic income item, then the alternative minimum tax system
or itemize and deduct for three specific necessary types is not applicable.
of expenses (occupational attire, continuing training,
and professional tools). The total deductible for each
category is limited to 3% of salary income.

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