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Personal income tax

Taxable income for individual

For any individual having income from sources in the Taiwan, a consolidated tax shall be levied on his or her income derived from those sources.

Individual tax residence

An individual is considered a tax resident, if domiciled and ordinarily reside in Taiwan. Or not domiciled but reside in Taiwan for over 183 days in a calendar year.

Tax for non-resident individual

Salaries paid to a non-tax-resident for services rendered in the Taiwan are subject to income tax. However, if the expatriate stays in Taiwan for not more than 90 days (cumulative) during a calendar year and salaries are paid by nonresident employer from overseas are exempted from income tax in Taiwan. Non-tax resident individual stays in Taiwan over 90 days is subject to withholding tax on income received from Taiwan source income at 18% for salaries and 20% on commission, rental, royalties, consulting and others professional fees.

Tax Rates for tax resident individual

For resident individuals, income tax is calculated as a percentage of net taxable income using below tax bracket.

Income Basic Tax (Alternative Minimum Tax, AMT)

Resident individuals are also subject to AMT under Income Basic Tax Act for annual basic income more than TWD 6.7 million at 20% flat tax rate.

Income subject to AMT for an individual = Taxable income of an individual + AMT add-back items.


AMT = (Income subject to AMT for an individual – NT 6.7 million) * 20%.

AMT add-back items include foreign-sourced income totaling NT 1 million or above and certain income exempted from regular income tax.


AMT represents floor of tax payable, if regular income tax is higher than AMT, no additional payment is required. If regular income tax is lower than AMT, then the taxpayer needs to pay additional tax for the difference between AMT and regular tax.

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