VAT (value-added tax): A tax on the sale of goods and services within the country as well as the importation of goods. The general tax rate is 5%. See our VAT and Uniform Invoice.
Company Income Tax filing: Income tax is levied annually on business profits. The current tax rate is 20%. Companies must also report their dividend distribution status. Any undistributed earnings from the previous year are subject to a one-time 5% surtax.
💡 CPA Note: The 5% surtax on undistributed earnings does not apply to Branch Offices, as they are not separate legal entities and do not “distribute dividends” in the same way as subsidiaries.
See our Taiwan Company Tax Provisional Income Tax filing: A mid-year tax payment where the government collects 50% of the previous year’s tax liability in advance (typically in September). See our Provisional Income tax and tax relief Withholding of various types of income: Companies are required to withhold tax at the source when making payments such as salaries, rent, dividends, or professional fees. Tax withheld from Taiwan residents is paid by the 10th of the following month (the Monthly WHT column); tax withheld from non-residents and foreign companies must be paid and reported within 10 days of the payment date. Companies must issue withholding certificates to payees after reporting to the tax authorities within the statutory deadline. Article 22-1 of the Company Law: Companies must periodically declare information regarding their responsible persons (directors) and major shareholders to the government platform, especially upon any changes.
2nd-generation NHI supplementary premium: When a company withholds the 2.11% supplementary premium (for example on rent, professional fees or dividends of NT$20,000 or more per payment, or on bonuses above four times the monthly insured salary), it pays the premium to the National Health Insurance Administration by the end of the following month, not by the 10th, and files the annual premium statement by January 31.