Taiwan Corporate Income Tax
Detailed corporate income tax rates and rules for Taiwan in 2026.
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%
Additional Notes
An alternative minimum tax (AMT) of 12% applies to companies with certain tax-exempt income. Taiwan provides tax incentives for biotech, green energy, and semiconductor industries. Multinational companies establishing regional headquarters in Taiwan may qualify for preferential treatment on management service income.
How Taiwan Corporate Tax compares
Taiwan’s corporate tax rate of 20% is the 127th highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and Asia’s regional average of 19.7%.
