Taiwan
Top Income Tax
40%
Marginal rate
Corporate Tax
20%
Standard rate
VAT / Sales Tax
5%
Standard rate
Capital Gains
0%
Standard rate
Overview
Taiwan offers a competitive tax environment with only 5% VAT, no capital gains tax on listed securities, and special incentives for foreign professionals via the Gold Card program. Taipei is a major tech hub home to TSMC and a thriving startup scene.
Income Tax Brackets
| Income Range (TWD) | Tax Rate |
|---|---|
| 0 - 560,000 | 5% |
| 560,000 - 1,260,000 | 12% |
| 1,260,000 - 2,520,000 | 20% |
| 2,520,000 - 4,720,000 | 30% |
| 4,720,000+ | 40% |
TWD amounts. Standard deduction of 124k TWD for singles. Foreign specialists may opt for 18% flat rate.
Corporate Tax
Standard Rate
20%
20% standard. 12% surtax on undistributed earnings.
VAT / Sales Tax
Standard Rate
5%
5% flat rate — one of the lowest in the world.
Capital Gains Tax
Standard Rate
0%
Securities transaction tax of 0.3% instead of capital gains tax on listed stocks.
Social Security Contributions
Employee
5.5%
Employer
14.02%
Self-Employed
5.5%
Covers labor insurance, health insurance, pension.
Special Tax Regimes
Foreign Special Professional Tax Incentive
18% flat tax on first 3M TWD of salary for qualifying foreign professionals.
Eligibility: Must hold special professional status (Gold Card holders, senior professionals). First 3 years of residency.
Digital Nomad Visa
Employment Gold Card for foreign professionals. Combines work permit, visa, and resident permit. Tax incentives for first 3 years.
Pros & Cons
Pros
- Only 5% VAT
- No capital gains tax on listed stocks
- Gold Card with tax incentives
- World-class tech sector
- Safe and clean
Cons
- 40% top income tax rate
- 12% surtax on undistributed profits
- Limited tax treaties
- Geopolitical risks
Living Indicators
Cost of Living Index
Moderate
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for Taiwan is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Taiwan government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.