Taiwan

An individual with a domicile in Taiwan who habitually resides there is a tax resident, as is a foreign national present in Taiwan for 183 days or more in a calendar year; one present for fewer than 183 days is a non-resident. A Taiwan national with household registration who is present for between roughly 2 and 30 days in a year may still be treated as a non-resident if their center of vital interests is outside Taiwan.

The tax year matches the calendar year. Individual income tax returns and any balance due must be filed and settled with the tax authority by 31 May of the following year, with no extensions available; married couples resident more than 183 days must file jointly, choosing among three permitted income-splitting methods.

18% — A non-resident alien present in Taiwan under 90 days in a calendar year owes an 18% withholding tax on salary paid by a Taiwan-registered entity, with remuneration paid from abroad exempt; one present between 90 and under 183 days owes a flat 18% on all Taiwan-taxable salary regardless of where it is paid.

Resident taxpayers choose between a standard deduction (TWD 131,000 single, TWD 262,000 married joint) or itemized deductions covering charitable contributions, insurance premiums, medical expenses, and mortgage interest on an owner-occupied home, plus separate special deductions for salary income, dependent children, and the disabled. Non-resident aliens receive no deductions, special deductions, or personal exemptions.

Taiwan separately imposes an Income Basic Tax (IBT), a flat 20% alternative calculation applying to residents when basic income — regular taxable income plus specified add-back items, including foreign-sourced income of TWD 1 million or more where basic income exceeds TWD 7.5 million — would produce more tax than the regular progressive calculation.

Taiwan imposes business tax, comprising VAT and a gross business receipts tax (GBRT); domestically, business tax registration carries no threshold, and VAT return periods are bimonthly. Foreign e-commerce operators with no fixed place of business in Taiwan must register and file bimonthly VAT returns once their annual sales to Taiwanese individuals exceed TWD 600,000.

Taiwan's business tax exempts certain essential and unprocessed foods, sales of land, and certain bonds and securities from VAT, while exports of goods and related services are taxable at a 0% rate.