Taiwan has signed double tax agreements (DTA) with 36 countries (updated October 2026) to prevent companies and individuals from being taxed by both jurisdictions. If a company operates out of a country that has a tax treaty with Taiwan, the DTA may provide relief from double taxation, depending on the particular service provided and the provisions of the DTA. The following withholding tax rates (in percent) apply to Taiwanese-source dividends, interest, and royalties paid to non-residents where the income is not connected with a permanent establishment in Taiwan.
How you claim treaty benefits depends on the type of income:
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Dividends, interest and royalties at the reduced treaty rate: no prior approval is needed. The Taiwan payer withholds at the treaty’s capped rate when it pays, as long as the foreign recipient provides a tax residency certificate and a beneficial-owner statement (Article 25 of the Regulations Governing the Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income).
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Tax exemptions (for example, business profits with no PE in Taiwan, or interest that the treaty exempts): the foreign company must apply to the district tax office for approval before payment (Articles 23 and 25).
If the treaty rate was not applied at payment, the recipient can claim a refund within 10 years from the date the tax was paid (Article 34).
Category utilizing the Tax Treaty in Taiwan:
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Reduced Dividend Income from 21% to 10% or other applicable tax rate when the invested Taiwan company pays a dividend to its foreign shareholder.
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Reduced Interest Income from 20% to 10% or other applicable tax rate when the Taiwan company pays interest to its foreign lender.
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Reduced Royalty Income from 20% to 10% or other applicable tax rate when the Taiwan company pays royalty to the foreign company.
4. If the foreign company does not constitute Permanent Establishment in Taiwan, it may apply for the tax exemption.
Application Procedure
To claim a treaty exemption (for example, business profits with no PE in Taiwan), the foreign company can assign an agent in Taiwan to apply to the local district tax office before making the payment. The process usually involves the following steps:
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Prepare Required Documents.
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Submit the Application to the district tax office where the Taiwan client is registered.
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Tax Office Review: The tax authority examines the documents to verify treaty eligibility.
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Approval & Withholding Adjustment:
- If approved, the Taiwan client withholds tax at the reduced treaty rate (or applies exemption).
- If not approved, the standard statutory WHT applies.
Required Documents
Typical documents include:
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Tax Residency Certificate issued by the foreign company’s home country tax authority.
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Original contract/agreements between the Taiwan payer and the foreign recipient.
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Application form for treaty benefits (provided by Taiwan’s tax authority).
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Proof of foreign company’s legal status (certificate of incorporation).
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Power of attorney (if a representative in Taiwan is applying on behalf of the foreign company).
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Any additional supporting documents requested by the tax officer.
Example
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A German company receives royalties from a Taiwan company.
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Standard WHT: 20%
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Treaty rate (Taiwan–Germany DTA): 10%
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Payment of USD 100,000:
- Without treaty application → USD 20,000 withheld.
- With treaty approval → USD 10,000 withheld (USD 10,000 tax saved).
List of Tax Agreements
Note:
Singapore: The WHT rate on dividends and the Company income tax on the profits of the investee company may not exceed 40% of the taxable income (original agreement, for income paid up to 31 December 2026). Under the renewed agreement, in force on 13 February 2026 and applicable from 1 January 2027, dividends, interest and royalties are each capped at 10%.