NTB Income Tax Brackets in Taiwan for 2024

A strategic economic hub in Asia Pacific, with strong industrial clusters and comprehensive infrastructure, Taiwan is ranked eighth in World Competitiveness according to the International Institute for Management Development (IMD) 2024 and ranked 14th globally (fifth in Asia) in the Investment Environment Risk Assessment Report (Business Environment Risk Intelligence) 2022. These factors including its pivotal role in international trade make Taiwan one of the world’s most attractive investment destinations.

Recent measures have been taken to improve the tax system and make it more internationally competitive; these measures include the redistribution of income tax burdens and the easing of taxes on wages and salary earners, low and medium-income earners, and families with children. Changes have also been made to create a more encouraging tax environment for investments. 

The official tax body is the National Taxation Bureau. The Income Tax Act provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with the tax laws of Taiwan. 

Here you will learn more about:

• headline tax rates
• personal income tax (PIT) rates
• corporate income tax (CIT) rates
• capital gains tax (CGT) rates
• withholding tax rates for residents and non-residents
• value-added tax (VAT) rates

Headline Tax Rates in Taiwan

Personal Income Tax (PIT) Brackets for Individuals in Taiwan for 2024

In Taiwan, resident and non-resident individuals are taxed on their Taiwan-sourced income unless there are applicable exemptions. 

There is also an income basic tax (IBT). This is levied at a flat 20% on individuals who are tax resident in Taiwan and includes expatriates who remain in Taiwan for 183 days or more in a given fiscal year.

Personal Income Tax (PIT) Brackets for Residents

Personal Income Tax (PIT) rates and brackets for residents are tabulated below.

Personal Income Tax (PIT) Rates for Non-Residents

Non-residents are subject to withholding (WHT) rates on salaries although other rates may apply for other types of personal income.

*In circumstances where the monthly salaries in full amount are equal to or lower than one and a half times of the monthly baseline salary, the withholding tax rate is 6%.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Taiwan for 2024

The Corporate Income Tax (CIT) rates in Taiwan are summarized below.

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Taiwan

Gains on the transfer or sale of fixed assets are taxed as part of current-year income for a company except for gains relating to the sale of land under the prior tax regime. For individuals, it is important to note that there is no separate CGT (unless a specific exemption applies) as all gains are regarded as part of income and subject to regular income tax assessment.

The general capital gains tax rates are summarized below. Capital gains are subject to the standard CIT and PIT rates.

Withholding Tax Rates for Residents and Non-Residents in Taiwan

In general, withholding tax (WHT) is levied on residents and non-residents in Taiwan. Rates may vary depending on the source of income and the WHT rates for dividends, interest and royalties are tabulated below. 

Taiwan is signatory to double taxation treaties with several countries, which may result in varied WHT rates. A taxpayer may benefit from the provisions of these DTTs.

Value-Added Tax Rates in Taiwan

The standard Value-Added Tax (VAT) rate in Taiwan is 5%.