Business taxes in Taiwan: calculator for sole proprietors and companies
Choose a sector, a legal form and a tax system, enter your annual revenue and expenses — the calculator shows every tax and contribution, the total and what you keep.
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Legal forms
Sole proprietorship (獨資) 獨資商號（獨資商業）
A business of one individual registered with the city or county government; there is no separate legal entity and the owner is liable with all assets. Since 2018 there is no enterprise-level income tax — profit is taxed in the owner's return.
Requirements
Commercial registration with the city or county government before starting (name, activities, capital, address); only stall vendors, home handicrafts and those whose sales are below the business tax threshold may operate without it.
Tax registration with the National Taxation Bureau; with average sales from NT$200,000 a month — uniform invoices and VAT returns every two months, below that — assessment by the tax office at 1%.
Register as a National Health Insurance unit and enrol the owner within 3 days of setting up the business.
Annual business return (except small-scale businesses) and the owner's consolidated income tax return — from 1 to 31 May of the following year.
The business itself pays no income tax: the profit per the books (revenue minus costs) is added to the owner's income and taxed by the consolidated income tax at 5–40%. The owner pays health insurance (5.17% of monthly profit, on at least NT$42,000) and National Pension of NT$1,329 a month.
Conditions
Business tax (VAT) is 5%: from average sales of NT$200,000 a month uniform invoices (統一發票) are compulsory and returns are filed every two months by the 15th. VAT is not included in the calculation.
The business files its annual return from 1 to 31 May without paying tax; the profit goes into the owner's consolidated income tax return filed in the same period.
With revenue up to NT$30 million you may declare profit at no less than the industry standard profit rate (IT 8%) and be reviewed on paper only (擴大書面審核); the calculation uses actual profit.
Deductions: NT$101,000 personal exemption plus the larger of the NT$136,000 standard deduction or the health insurance and National Pension premiums actually paid (no cap).
An owner working alone without paid helpers may instead be insured through an occupational union (職業工會) — category-2 health insurance plus Labour Insurance, and then no National Pension; this option is not calculated.
Small-scale: assessed sales × industry profit rate
Sole proprietor獨資商號（小規模營利事業，查定課徵）
If sales average under NT$200,000 a month, the tax office assesses sales each quarter and charges 1% business tax instead of 5% VAT. There is no business income tax return: the owner's income = assessed sales × the industry profit rate (IT 8%), whatever the actual costs.
Conditions
Revenue below NT$2,400,000 a year (average under NT$200,000 a month); from that level the tax office requires uniform invoices and 5% VAT.
Profit rate by industry (2025 table, the latest published): programming and IT consulting 8%, management consulting 10%, advertising and commercial design 7%, activities not named in the table 6%.
With no other income the assessed income (at most NT$192,000 a year in IT) stays within the exemption and standard deduction (NT$237,000), so there is no income tax and health insurance is on the minimum base.
The 1% tax on assessed sales is billed quarterly (in January, April, July and October); below the threshold (services NT$50,000, goods NT$100,000 a month) it is not charged. Not included in the calculation.
Ordinary receipts are issued instead of uniform invoices. The Ministry of Finance may require regular VAT filing given the nature and capacity of the business.
Health insurance is based on the assessed income (sales × profit rate), on at least NT$42,000 a month; National Pension is NT$1,329 a month.
A legal entity with one or more shareholders liable only up to their contribution. The company pays income tax and the owner pays tax on dividends.
Requirements
The capital must be fully paid in by the shareholders (no instalments) and verified by a certified public accountant at registration; the Act sets no minimum amount.
Registration fee: NT$1 per NT$4,000 of capital, at least NT$1,000 (NT$300 less online); name pre-check NT$300 (NT$150 online).
From the date of incorporation the company must register as a health insurance unit and insure its responsible person, even without employees.
Financial statements go to shareholders within 6 months after year-end; provisional tax is paid in September and the annual return filed in May; 10% goes to the legal reserve before dividends.
Profit-seeking enterprise income tax is 20%: profit up to NT$120,000 is exempt and the tax may not exceed half of the excess over NT$120,000. The owner either adds dividends to income with an 8.5% credit (up to NT$80,000) or taxes them separately at 28% — the better option is used. Undistributed earnings bear an extra 5%.
Conditions
The dividend option is chosen each year in the return. With no other income, 28% becomes cheaper from about NT$9.6 million of dividends. If the 8.5% credit exceeds the tax the difference is refunded — the calculation then shows the tax as 0 and does not deduct the refund.
Before paying dividends the company must set aside 10% of after-tax profit as a legal reserve until it equals the capital; that part is not subject to the 5% surtax on undistributed earnings. The calculation assumes the reserve is already complete.
As the company's responsible person the owner is insured in category-1 health insurance on the dividends received (on at least NT$42,000 a month if profit is not distributed); dividends above that base bear a 2.11% supplementary premium (payments under NT$20,000 do not).
Provisional tax is paid from 1 to 30 September (half of last year's tax); the annual return and balance are due from 1 to 31 May. VAT of 5% and uniform invoices apply as for a sole proprietorship; not included in the calculation.
Software development, IT services, consulting for companies and entrepreneurs.
All forms are available. For a small-scale business the profit rate for programming, IT consulting and related services is 8% of sales (used in the calculation); management consulting is 10%.
No business tax on services while sales are below NT$50,000 a month; up to NT$200,000 a month — 1% of assessed sales, above that — uniform invoices and 5% VAT.
Selling software online without a physical medium counts as a service: the threshold is NT$50,000 a month.
Other business services draft — data being checked
Marketing, design, translation, engineering, bookkeeping and other professional services to companies.
Small-scale profit rate: advertising and commercial design 7% (used in the calculation); specialised design 8%; architecture, engineering and technical consulting, legal services 10%; services not named in the table (e.g. translation) 6%.
Lawyers, CPAs, architects, technicians, authors and others earning by their own skill (執行業務者) are not businesses: their income is professional practice income under other rules, not calculated here.
Business tax threshold for services is NT$50,000 a month; up to NT$200,000 — 1% of assessed sales.
Services to individuals draft — data being checked
Household services, repairs, beauty, tutoring, photography — for private customers.
Most household services, repairs, hairdressing and photography are not named in the table — profit rate 6% (used in the calculation); nail and eyelash services, other beauty and body care, unclassified education — 10%.
For barbers, bathhouses and other assessed businesses, the higher of declared and assessed sales is used.
Business tax threshold for services is NT$50,000 a month; a small-scale business issues ordinary receipts instead of uniform invoices.
Trade in goods draft — data being checked
Retail and wholesale, including an online shop (excluding excise goods).
Small-scale profit rate: grocery stores, supermarkets and other unclassified general retail 5%; health supplements 8%; goods not named in the table (clothing, household goods online) 6% (used in the calculation).
The threshold for goods is NT$100,000 of sales a month: an online seller below it need not register for business tax but still declares income (sales × profit rate); from the threshold — registration, and up to NT$200,000 a month 1% of assessed sales, reduced by up to 10% of input VAT.
From NT$200,000 a month the tax office requires uniform invoices and 5% VAT with full input credit.
Manufacturing draft — data being checked
Making and selling your own products: food, furniture, clothing, handmade goods.
Most manufacturing (furniture, bakery, handmade goods) is not named in the table — profit rate 6% (used in the calculation); named examples: tofu 5%, knitted outerwear 4%, woven sportswear 5%.
A home handicraft business where the owner works alone or mainly alone may skip commercial registration; business tax applies from NT$100,000 of sales a month.
Assumptions
One owner — a national with household registration in Taiwan, tax resident, aged 25–64, single, no employees, no other income; full year 2026; amounts in New Taiwan dollars (NT$).
Owner's health insurance is category 1 (business owner): 5.17% of the monthly base paid in full by the owner; the base is monthly profit (for the company, dividends) rounded up to the table grade, between NT$42,000 and NT$313,000 (the owner proves the income). National Pension is NT$1,329 a month; Labour Insurance through an occupational union is not included.
Income tax: NT$101,000 exemption plus the larger of the NT$136,000 standard deduction or the health insurance and National Pension premiums; the basic living expense difference and the alternative minimum tax are not considered.
VAT (business tax 5%) and the 1% tax on a small-scale business's assessed sales are not included. For the company: the owner takes no salary; profit after tax is either fully paid out as dividends (the legal reserve is already complete) or kept in the company with the extra 5%.
Small-scale business: the sales assessed by the tax office equal actual revenue; industry profit rates are from the 2025 table (latest published): IT 8%, business services 7%, services to individuals, trade and manufacturing 6%.
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