Taiwan Tax Rates
Taiwan operates a progressive income tax system with rates from 5% to 40%, administered by the National Taxation Bureau. The standard corporate tax rate is 20%, and Taiwan levies a 5% VAT (one of the lowest in Asia). Taiwan's tax system features a unique imputation system for dividends and provides competitive incentives for its world-leading semiconductor and technology industries.
Top Income Tax Rate
40%
Corporate Tax Rate
20%
VAT / Sales Tax
5%
Capital Gains Tax
20%
Detailed Tax Information
Income Tax Brackets
Taiwan's individual income tax applies progressive rates from 5% to 40% across five brackets. Residents are taxed on worldwide income while non-residents are taxed at a flat 18% on wages and 21% on other income for stays under 183 days. A standard deduction of TWD 131,000 for single filers or TWD 262,000 for married couples is available, along with personal exemptions of TWD 97,000 per person and various special deductions for salaries, disabilities, education, and childcare.
| Income Range | Tax Rate |
|---|---|
| NT$0 – NT$560K | 5% |
| NT$560K – NT$1.3M | 12% |
| NT$1.3M – NT$2.5M | 20% |
| NT$2.5M – NT$4.7M | 30% |
| NT$4.7M+ | 40% |
Corporate Tax
Taiwan's corporate income tax rate is 20% on taxable income exceeding TWD 120,000. Companies with taxable income of TWD 120,000 or less are exempt. A surtax of 5% applies to undistributed retained earnings, encouraging profit distribution. Various incentives are available under the Statute for Industrial Innovation, including R&D tax credits (up to 15% of R&D expenditure or 10% spread over 3 years), investment credits for smart machinery and 5G equipment, and special provisions for headquarters companies.
Standard Rate
20%
Capital Gains Tax
Capital gains on securities for individuals are currently exempt from income tax in Taiwan, though an integrated income tax on securities capital gains has been proposed and repealed multiple times. Real property transactions are subject to a consolidated house and land tax ranging from 15-45% for properties held under specified periods. Corporate capital gains on securities are included in taxable income at the 20% rate.
Rate
20%
VAT / Sales Tax
Taiwan levies a business tax (VAT) at a standard rate of 5%, one of the lowest VAT/GST rates in Asia. Exports are zero-rated. Certain items are exempt, including land sales, medical services, educational services, and financial services (which are subject to a separate gross receipts tax). The low VAT rate is a deliberate policy to maintain economic competitiveness.
Standard Rate
5%
Cryptocurrency Tax
Taiwan has been developing its approach to cryptocurrency taxation. Crypto gains may be classified as property transaction income subject to income tax at regular progressive rates. A 5% business tax may apply to crypto exchanges operating in Taiwan. The Financial Supervisory Commission has established anti-money laundering regulations for virtual asset service providers.
Tax Treaties
Taiwan has approximately 34 comprehensive income tax agreements, though its unique diplomatic status affects treaty-making. These agreements follow OECD model conventions and provide relief from double taxation. Taiwan's treaties are often structured through economic or trade offices rather than traditional embassy channels.
Treaty Network
34
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Taiwan
See how much you could save by moving here from your current country.
+$14K
Tax in United States
$24K
24.4% effective
Tax in Taiwan
$11K
10.5% effective
You Save
56.9%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
