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2024-06-03Taiwan Company Representatives Tax Regulations
No matter foreigners or Taiwanese to be the responsible person of Taiwan company, the tax regulations will be varied as different as the country of tax residents.
Here is the comparison for Taiwan tax residents versus non-tax residents:
Note 1: Tax incentives applicable to foreign professionals employed by profit-making enterprises:
Foreign professionals who are eligible for this preferential tax measure refer to those who work in Taiwan and do not hold dual nationality, and are engaged in maintenance engineering or construction technology, transportation, taxation and financial services, real estate brokerage, immigration services, lawyers, patents Teachers, technicians, medical care, environmental protection, culture, sports and leisure services, academic research, veterinary medicine, manufacturing, distribution services, supervisors of overseas Chinese or foreigners with approved investment or establishment of enterprises, professional, scientific or technical services It is limited to business management, design, planning or consulting, chefs in the catering industry, and other workers designated by the labour department.
Taiwanese companies that employ foreign professionals who meet the above applicable scope should apply for permission from the labour department in accordance with regulations and obtain a foreigner work permit letter. Their total stay in Taiwan in the same tax year must be 183 days, and the total number of days must be the taxable salary paid by Taiwanese employers must reach TWD1,200,000; if the foreign professional has lived in Taiwan for less than one year in the current year, the annual taxable salary converted from the salary during that period must reach TWD1,200,000.
Note 2: Basic salary in 2023 TWD 26,400 * 1.5 times = 18% withheld for monthly salary above TWD 39,600; 6% withheld for monthly salary below TWD 39,600
- Residency and holding the household registration in Taiwan within 1 to 31 days (with Taiwan labour insurance, health insurance, national pension, or spouse and children in Taiwan). Such as overseas Chinese (if the period of residency is less than 31 days, it is defined as non-tax residents.)
- Residency and holding the household registration in Taiwan more than 31 days (with Taiwan labour insurance, health insurance, national pension, or spouse and children in Taiwan). Such as Taiwan citizens, Taiwanese on foreign business trips.
- Without household registration in Taiwan but staying in Taiwan more than 183 days. Such as foreign workers in Taiwan (with tax liability shall proceed the annual income tax return in May each year.)
Here is the comparison for Taiwan tax residents versus non-tax residents:
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Note 1: Tax incentives applicable to foreign professionals employed by profit-making enterprises:
Foreign professionals who are eligible for this preferential tax measure refer to those who work in Taiwan and do not hold dual nationality, and are engaged in maintenance engineering or construction technology, transportation, taxation and financial services, real estate brokerage, immigration services, lawyers, patents Teachers, technicians, medical care, environmental protection, culture, sports and leisure services, academic research, veterinary medicine, manufacturing, distribution services, supervisors of overseas Chinese or foreigners with approved investment or establishment of enterprises, professional, scientific or technical services It is limited to business management, design, planning or consulting, chefs in the catering industry, and other workers designated by the labour department.
Taiwanese companies that employ foreign professionals who meet the above applicable scope should apply for permission from the labour department in accordance with regulations and obtain a foreigner work permit letter. Their total stay in Taiwan in the same tax year must be 183 days, and the total number of days must be the taxable salary paid by Taiwanese employers must reach TWD1,200,000; if the foreign professional has lived in Taiwan for less than one year in the current year, the annual taxable salary converted from the salary during that period must reach TWD1,200,000.
Note 2: Basic salary in 2023 TWD 26,400 * 1.5 times = 18% withheld for monthly salary above TWD 39,600; 6% withheld for monthly salary below TWD 39,600
Disclaimer
All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.
WhatsApp/Line/Wechat: +852 5616 4140
All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.
WhatsApp/Line/Wechat: +852 5616 4140
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