Tax system in Taiwan
Taiwan taxes residents staying 183 days or more on worldwide income through five brackets from 5% to 40%. Exemptions near TWD 101,000 per person plus standard, salary and rent deductions shield ordinary pay substantially.
Listed-share gains pay no income tax; a 0.3% securities-transaction tax on sale proceeds applies instead. Property flips pay 45% inside two years, falling to 15% past ten.
Companies pay 20% plus 5% on undistributed earnings, with CFC rules since 2023 and 21% dividend withholding for foreigners. There is no wealth tax, while estates and gifts pay 10% to 20%.
Tax rates at a glance
- Income tax
- 5% - 40%Progressive
- Wealth tax
- 0%
- Inheritance tax
- 10% - 20%
- Share-sale tax
- 0.3%
- Corporate tax
- 20%
- Dividend tax
- 28% / credit
- VAT
- 5%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsInvestorsFoundersCross-border groups
Watch out for
- Taiwan is not low-tax for high salaries. The 40% top rate plus 20% alternative minimum on broad income catches wealthy residents firmly.
- Non-residents get no deductions at all. Short stayers pay flat withholding on gross Taiwan income, which can exceed resident effective rates.
- The treaty network is thin at 35 agreements with no US comprehensive treaty. Cross-border relief is weaker than in treaty-dense neighbours.
- CFC rules attribute offshore profits yearly since 2023. Holding retained earnings in low-tax subsidiaries no longer defers Taiwanese tax.
Frequently asked questions
Is Taiwan a high-tax country?
For top salaries and wealthy residents, yes: 40% top income tax with 20% minimum tax, 20% corporate tax plus retained levy, and 10% to 20% succession tax. Ordinary workers face modest single-digit effective rates.
Does Taiwan have a wealth tax?
No. Taiwan levies no net wealth tax, though house tax and land-value tax apply to property.
Which taxes matter most in Taiwan?
The main ones are consolidated income tax with big deductions, 20% corporate tax, 0.3% share-transaction tax, property flip rates, 21% non-resident dividend withholding and 5% VAT.