February 1, 2008
New taxation regulations for foreign professionals in Taiwan have taken effect as of the beginning of 2008, according to an announcement by the Ministry of Finance (MOF).
The new regulations provide preferential tax incentives to foreign professionals employed in Taiwan, and are aimed at improving the overall environment for recruiting and attracting professional talent from other countries. The regulations, which address a general shortage of professional talent, are expected to benefit up to 3,000 foreign workers in Taiwan, said the Central News Agency.
The regulations apply to foreign professionals that reside in Taiwan for more than 183 days in a calendar year and that do not possess both Taiwan and foreign citizenship. In addition, foreign professionals working in Taiwan are limited to the fields stipulated in the Employment Services Act, such as financial services, civil engineering, construction technology, medical care, the culinary industry (chefs) and so forth.
Under these regulations, monthly payment provided by employers as taxable income must be at least
NTD 100,000 or higher. However, in special circumstances, this condition can be waived with the approval of the MOF. An MOF official noted that exceptions have been granted for employees involved with several projects under the National Science Council.
The MOF said that in conforming with the above conditions, employers according to employment contracts, payment to foreign professionals and dependents' round trip travel expenses.
Under these regulations, foreign professional employees under contract may now have the following items listed as expenses rather than taxable income:
- Round-trip travel for foreign professional employees and their dependents
- Travel expenses for returning to home country
- Moving costs
- Water and electric bills
- Cleaning bills
- Telephone bills
- Rent
- Rental property repairs
- Children's school tuition fees
(Central News Agency)
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