Quick Calculation of Alien Individual Income Tax for 2025
Taiwan Income Tax Calculator 2025
Tax Obligations Affected by Length of Stay
(A) Residing in Taiwan for 90 days or less within a fiscal year (January 1 ~ December 31):
- Salary and compensation from Taiwan-registered companies are subject to an 18% withholding tax (6% if the monthly salary does not exceed NT$44,250 in 2026, 1.5 times the minimum wage).
- Salary and compensation from foreign companies are not taxable.
- Commissions, interest, rental income, and royalties from Taiwan-registered companies are subject to a 20% withholding tax.
- Dividend income from Taiwan-registered companies is subject to a 21% withholding tax.
(B) Staying in Taiwan for over 90 days but less than 183 days within a fiscal year:
- Salary and compensation from foreign companies for work in Taiwan are taxed at 18%. No one withholds this tax, so you must file it yourself: in May of the following year, or before you leave Taiwan if you leave before the May filing period.
(C) Residing in Taiwan for 183 days or more within a fiscal year:
- Individuals become tax residents.
- Dividends distributed to resident shareholders are not subject to withholding tax. But dividend tax is paid when filing tax.
- Tax residents must file an income tax return between May 1 and May 31 of the following year to settle any outstanding tax liabilities.
- Taxpayer can deduct exemptions and deductions from their income.
- If leaving Taiwan during the fiscal year, the individual must file the tax return before departure.
Income tax for Taiwan tax resident
A resident taxpayer is required to submit an income tax return between May 1 and May 31 of the subsequent year and settle any outstanding tax liabilities. The applicable tax rates span from 5% to 40%.
How do foreign nationals residing in Taiwan for 183 days or more calculate their tax, and what exemptions and deductions can they claim?
A foreign national who resides in Taiwan for at least 183 days within a year is classified as a tax resident of Taiwan. The individual income tax for a foreign resident is computed using a progressive rate based on their net consolidated income. This net consolidated income is determined by subtracting applicable exemptions and deductions from the annual gross consolidated income.
Net taxable income = Total Household income − Exemptions − Deductions
Tax Payable = (Net taxable income × Tax Rate) − Progressive Difference
Step 1: Determine Total Household Income
Total Household Income: This refers to the total income earned during the previous year (January to December). Taxpayers, including their spouses and dependents, must declare the following types of income:
- Dividend income
- Professional practice income (Lawyer, Doctors, Accounting firm, etc)
- Salary income
- Interest income
- Rental income
- Royalties
- Capital gains from property transactions
- Prizes or awards from competitions, contests, or lotteries
- Retirement income
Step 2: Determine the Exemptions and Deductions
1. Personal Exemptions (2025): 97,000 exemption for each person (including the taxpayer, their spouse, and dependents under age 70).
145,500 exemption for each person (including the taxpayer, their spouse, and dependents aged 70 or above).
2. Deductions (2025): Foreigners can claim either standard deductions or itemized deductions and special deductions.
(1) Salary deduction: 218,000 for the received salary income.
(2) Taxpayers can choose between the “Standard Deduction” and the “Itemized Deduction.”
Standard deduction: It does not require any supporting documents. 131,000 for a single person and 262,000 for a married couple.
Itemized deductions: It requires the submission of supporting documents as proof.
- A. Donation
- B. Personal insurance premiums
- C. Medical and maternity expenses
- D. Losses from disaster
- E. Mortgage interest paid on loan for an owner-occupied residence
(3) Special deductions:
- A. Special deduction for salary or wages
- B. Special deductions for savings and investment
- C. Special deduction for disability
- D. Special deduction for tuition
- E. Special Deduction for Pre-School Children: First child 150,000, second and subsequent children 225,000
- F. Rental expense: The maximum deduction for the rental expense is NT$180,000
- G. Long-term care: NT$180,000 per person who meets the long-term care criteria (from 2025 income)
Deductions E, F and G are not available if the household’s marginal tax rate is 20% or higher, if dividends are taxed separately at 28%, or if the household’s basic income for AMT exceeds NT$7.5 million.
To claim a deduction for house rent, you must provide the following documents and information:
- Lease Agreement: A copy of the lease signed by both the tenant and landlord.
- Proof of Rental Payment: This can include receipts issued by the landlord, remittance certificates, ATM transfer records, or other evidence of payment.
- Property Tax Number: The house tax identification number of the rental property.
- Landlord’s Identification Number: The national ID number of your landlord.
- Proof of Address Registration: A document, such as your ARC (Alien Resident Certificate), showing your registered address matches the rental property.
Important Note: Ensure that your landlord has reported the rental income to the tax authorities before claiming the deduction. If they fail to do so, they may face penalties.
(4) Deduction for Basic Living Expense Difference:
Basic Living Expense difference = Basic Living Expense (213,000 for 2025) × (Number of dependents plus taxpayer) − (Personal Exemption: 97,000) × (number of dependents + taxpayer) − Standard Deduction (NT$131,000 if single, 262,000 if married) or itemized deductions − Special deductions for savings and investment, disability, tuition, pre-school children, long-term care and rent (the salary special deduction is not subtracted)
If Basic Living Expense Difference is negative, the deduction is 0. If Basic Living Expense Difference is positive, use the difference as the deduction.
Calculation example for basic living difference:
David is a taxpayer with a wife and two children, whom he can claim as dependents. He chooses to use the Standard Deduction. The difference between his basic living expense amount and the total of his exemptions and standard deduction is calculated as follows:
- Basic Living Expense Amount = NT$213,000 per person (2025)
- Number of Family Members = 4 (David, his wife, and two children)
- Exemptions = NT$97,000 per person
- Standard Deduction for Married Couple = NT$262,000
Calculation (assuming no other special deductions): 213,000 × 4 − (97,000 × 4 + 262,000) = 202,000
Step 3: Calculate Tax Payable
Tax Payable = (Net Consolidated Income × Tax Rate) − Progressive Difference
2025 progressive tax rates (Unit: NTD)
2026 income (filed in May 2027)
- Personal exemption: 101,000 per person (151,500 aged 70 or above)
- Standard deduction: 136,000 single / 272,000 married
- Salary special deduction and disability special deduction: 227,000
- Tax brackets: 0 ~ 610,000 at 5%; 610,001 ~ 1,380,000 at 12% (progressive difference 42,700); 1,380,001 ~ 2,770,000 at 20% (153,100); 2,770,001 ~ 5,190,000 at 30% (430,100); 5,190,001 and above at 40% (949,100)
- The 2026 basic living expense amount has not yet been announced.
Quick Calculation of Alien Individual Income Tax for 2025
Taiwan Income Tax Calculator 2025
Frequently asked questions
When do foreigners need to file income tax returns in Taiwan?
Foreigners in Taiwan need to file income tax returns based on their length of stay:
- 90 days or less: Income from Taiwan sources is withheld at the source, and no tax return is needed unless there is income from property transactions or occasional trade, which must be declared before departure.
- More than 90 but fewer than 183 days: Income from Taiwan sources is withheld at the source, but overseas income earned through services in Taiwan must be reported in May of the following year, or before departure if you leave before the May filing period.
- 183 days or more: File the previous year’s income tax return between May 1st and May 31st. If leaving mid-year, file income earned that year before departure. If May 31st is a holiday, the deadline extends to the next workday.
What is salary and wages income?
Salary and wages mean all income received for services rendered or work performed, including salaries, remunerations, wages, allowances, annuities, endowments, bonuses, retirement payments, pensions and/or any other similar subsidies or compensations. But non-ROC residents staying in the ROC for not more than 90 days within a taxable year, whose remunerations were derived from employers outside the ROC, are exempt from the above mentioned.
When is tax payment due?
The tax payment periods for aliens are different for different lengths of resident status in Taiwan.
For an individual staying in Taiwan for not more than 90 days, the income tax payable shall be withheld directly at the time of payment by the withholder in accordance with the withholding rate. However, in the case that an individual has sole or additional income deriving from sources to which such procedure for withholding is not ordinarily applied, such as for income occurring from property transaction, occasional trade, interest from mortgages, etc., he or she should declare such income and pay such tax as may be found owing before his or her departure.
For an individual staying in Taiwan over 90 days but less than 183 days the income tax payable shall be withheld directly at the time of payment by the withholder in accordance with the withholding rate. (The employer is responsible for the preparation of a “Withholding & Non-Withholding Tax Statement” which will be required for use by the taxpayer at the time he or she is filing a tax return.) Furthermore, income derived from abroad for services rendered within Taiwan, or any income, to which such procedure for withholding as described above is not ordinarily applied, such as the income occurring from property transaction, occasional trade, interest from mortgages, etc., should be declared and the tax paid in May of the following year, or before departure if the individual leaves before the May filing period.
Any individual staying in Taiwan for 183 days or more shall file the annual income tax return of the previous year during the period from 1st May to 31st May of the current year. However, any individual who intends to leave Taiwan in the interim of the year, and will not return within the same year, shall file his or her income tax return before his or her departure.
What would happen if a foreigner does not file income tax?
In case a foreigner fails to file income tax return, such taxes will be charged a penalty rate of a maximum of three times the amount of the tax payable and the tax authorities may inform the National Immigration Agency to deny exit clearance to the foreigner in accordance with the stipulation of Paragraph 2, Article 72 of the Income Tax Act.
If a Taiwanese citizen is married to an alien, where should they file income tax returns?
If they choose to file a joint return (no matter whether the foreign national is resident or non-resident) and choose the Taiwanese citizen to be the taxpayer, they can file their income tax returns with the tax authorities located in the district where they live, or they may file at the Foreign Taxpayers Office of the National Tax Administration if they choose the foreign national to be the taxpayer. However, no matter where they file tax returns, their income should be filed jointly.
What are the withholding tax rates for “non-residents”?
Salary 18% (6% if the monthly salary does not exceed NT$44,250 in 2026); dividends 21%; interest, rent, royalties, commissions and professional fees 20% (15% for interest on bonds and short-term bills); pensions 18% of the amount above the tax-free threshold. A lower rate may apply under a tax treaty.
How is the period of stay for foreigners calculated in Taiwan?
The period of stay for foreigners in Taiwan is calculated as follows:
- Residence Calculation: Based on passport stamps or the Certificate of Entry and Exit Dates from the National Immigration Agency.
- Arrival and Departure Dates: The arrival date is excluded, and the departure date is included. For example, arriving on January 11 and departing on January 30 counts as 19 days.
- Multiple Entries: Total accumulated days spent in Taiwan across all visits within a taxable year are considered.