Employer Tax Contributions

Tax Type	Rate (Employer Share)	Base
Labor Insurance (LI)	70% of 11.5% - 12.5%*	Employee's monthly insured salary
National Health Insurance (NHI)	60% of 5.17%	Employee's monthly insured salary
Labor Pension	At least 6%	Employee's monthly wage
Withholding Income Tax (Resident)	Varies (5% or tax table)	Employee's monthly salary

*Note: The Labor Insurance rate is subject to change. It was 12% and is confirmed to increase to 12.5% effective January.

Filing & Compliance

• Annual withholding tax reporting is due to the National Taxation Bureau by the end of January of the following year.
• Monthly social security payments (Labor Insurance, Health Insurance, Labor Pension) are generally due by the 10th or 15th of the following month, with Labor Insurance and Labor Pension due by the 30th of the following month.
• Employers must enroll all employees in statutory social insurance from their first day of employment.

Employee tax deductions in Taiwan are determined by residency status, with residents benefiting from several deductions and exemptions not available to non-residents.

Residency Status

• Resident: Deemed resident if domiciled and residing in Taiwan, or if residing in Taiwan for at least 183 days in a tax year, even without domicile. If entering and departing Taiwan multiple times within a year, the resident days are accumulated.
• Non-Resident: Those not meeting the residency requirements are considered non-residents. Non-residents staying in Taiwan for more than 90 days during a tax year are taxed on their Taiwan-sourced income at a flat rate of 18%.

Tax Rates and Deductions (2025)

As of February 5, 2025, the tax rates are subject to adjustments based on the Consumer Price Index (CPI). While precise 2025 figures are unavailable at this time, the information below is based on the latest available data (2023) and may not reflect potential adjustments. It is strongly advised to confirm current rates with official sources closer to the relevant tax period.

• Residents: Taxed at progressive rates. Income tax brackets are adjusted if the accumulated CPI rises by at least 3% since the last adjustment. Refer to official sources for the most up-to-date brackets.
  • Standard Deduction: TWD 124,000 for single filers, TWD 248,000 for married couples filing jointly.
  • Itemized Deductions: Taxpayers can choose between standard and itemized deductions. Itemized deductions require supporting documentation and include:
    • Charitable donations (capped at 20% of consolidated gross income, except donations to government or military, which are fully deductible)
    • Insurance premiums (capped at TWD 24,000 per person annually, excluding national health insurance, which is fully deductible)
    • Medical and maternity expenses
    • Calamity losses
    • Housing loan interest (up to TWD 300,000) or rental payments (up to TWD 120,000) for self-use residences in Taiwan.
  • Special Deductions:
    • Losses from property transactions
    • Interest earned from bank deposits (up to TWD 270,000)
    • Disability/handicap (TWD 207,000 per person)
    • Dependent child tuition (TWD 25,000 per child for approved college/university)
    • Pre-school children (TWD 120,000 per child under specific income conditions)
    • Salaries/wages (fixed salary deduction up to TWD 207,000)

Income Subject to Tax

All income derived from services performed in Taiwan is considered taxable income, regardless of where payment is made. This includes salary, bonuses, allowances, and other benefits. Some reimbursements, such as for business-related car expenses (within limits), and home leave for expatriates (with proper documentation), may not be taxable.

Tax Filing and Payment

• Tax Year: January 1 to December 31
• Return Due Date: May 31 (For the previous tax year)
• Joint Filing: Allowed for married couples

Withholding Tax

Employers in Taiwan are required to withhold income tax from employee salaries monthly. Optimizations to this withholding tax system took effect January 1, 2025. Consult official sources or tax professionals for details on the latest changes.

Additional Information

• Employment Gold Card: Offers certain tax benefits to qualified foreign professionals, including a reduced tax rate on income above TWD 3 million and an exemption from alternative minimum tax on foreign-sourced income for the first five years of residency.

It's crucial to refer to the Taiwan Ministry of Finance and National Taxation Bureau of Taipei for the most current tax regulations and details. Consulting a tax professional is also recommended for personalized advice.