Regimes: 9
Tax relief for foreign special professionals
外國特定專業人才減免所得稅（外國專業人才延攬及僱用法第22條；外國特定專業人才減免所得稅辦法）
OpenFor people relocating
50% of salary above TWD 3 million exempt; foreign-source income outside the alternative minimum tax.
Details
- Who
- Foreigners with recognised special expertise (special-professional work permit or Employment Gold Card) who first obtained residence for work and in the 5 years before were neither Taiwan residents nor had household registration.
- How it works
- For 5 years from the first year with 183 days in Taiwan and a salary above TWD 3 million, half of the salary above TWD 3 million is excluded from taxable income and foreign-source income is excluded from the alternative minimum tax base. The revised regulations (2 March 2026) apply from 1 January 2026.
- Duration
- 5 tax years from the first year with 183 days' stay and salary above TWD 3 million; changing employer does not interrupt it.
- How to opt in
- Claim in the annual return for each year with the documents listed in art. 5 of the regulations; a claim after the filing deadline is not accepted.
- Limits and risks
- Only salary (from Taiwanese and foreign employers) for professional work in the recognised field; if the conditions are not met, the relief is clawed back.
- Legal basis
- 外國特定專業人才減免所得稅辦法 arts. 3–5 (amended 2026-03-02, in force 2026-01-01); 外國專業人才延攬及僱用法 art. 22
- Checked
- 10 November 2026
Territorial taxation and the alternative minimum tax
境外所得不計入綜合所得總額；個人所得基本稅額（所得稅法第2條；所得基本稅額條例第12、13條）
OpenOther
Foreign income under TWD 1 million per household is untaxed; above that only 20% on the base above TWD 7.5 million.
Details
- Who
- Taiwan residents with foreign-source income.
- How it works
- Regular income tax applies only to Taiwan-source income. Foreign-source income enters only the alternative minimum tax base if it is at least TWD 1 million per household in the year: 20% of the base above TWD 7.5 million (2026 amount), with the difference over the regular tax payable; foreign tax is credited up to the increase.
- How to opt in
- No application: foreign income of TWD 1 million or more is reported in the minimum tax computation of the annual return.
- Limits and risks
- Individual CFC rules (art. 12-1) add the profits of controlled companies in low-tax jurisdictions.
- Legal basis
- 所得稅法 art. 2; 所得基本稅額條例 arts. 12(1)(1), 13 (deduction 7,500,000 for 2026 per MOF notice of 2025-11-27)
- Checked
- 10 November 2026
Tax-free voluntary pension contributions of employees
勞工退休金自願提繳不計入薪資收入（所得稅法第14條第1項第3類第5款；勞工退休金條例第14條第3項）
OpenFor employees
Up to 6% of salary excluded from taxable income.
Details
- Who
- Employees covered by the new labour pension scheme (nationals, foreigners with permanent residence, spouses of nationals).
- How it works
- An employee may voluntarily contribute up to 6% of monthly wages to the personal pension account; the contributions are excluded from salary in the year paid and are taxed only on payout as retirement income.
- How to opt in
- Tell the employer; the employer reports the rate to the Bureau of Labor Insurance (changes at most twice a year).
- Limits and risks
- The payout from the account is taxed as retirement income (art. 14, category 9).
- Legal basis
- 所得稅法 art. 14(1), category 3, item 5; 勞工退休金條例 art. 14(3)
- Checked
- 10 November 2026
Tax deferral on employee share awards
員工獎酬股份緩課（產業創新條例第19-1條）
OpenFor employees
Tax deferred until sale; after 2 years of service the base is the value at receipt.
Details
- Who
- Employees of the issuing company (and of a parent or subsidiary with more than 50%) receiving shares as remuneration; not directors or supervisors.
- How it works
- An employee may elect not to include share awards in income of the year received; the income is taxed in the year of sale. If the shares are held and the employee stays 2 years, the value at receipt is taxed rather than a higher sale price. The 2026 wording applies from 1 January 2027 to 31 December 2029 (cap TWD 10 million a year); for 2026 the previous wording applies — its cap is not checked here.
- How to opt in
- Employee's election; the company files the form with the competent authority and the tax office.
- Limits and risks
- The election is irrevocable; without proof of the value at receipt the whole sale price is taxed.
- Legal basis
- 產業創新條例 art. 19-1 (amended 2026; in force 2027-01-01 to 2029-12-31), art. 72
- Checked
- 10 November 2026
Angel investor deduction
個人投資國內高風險新創事業公司減除（產業創新條例第23-2條）
OpenFor investors
50% of the investment deducted from income; up to TWD 5 million a year.
Details
- Who
- Individuals investing cash in new shares of an approved Taiwanese high-risk start-up company less than 8 years old.
- How it works
- For investments of at least TWD 500,000 in one company in a year held for 3 years, 50% of the amount is deducted from gross income in the year the 3 years end; at most TWD 5 million a year in total (TWD 3 million for companies outside priority industries). Available until 31 December 2029.
- Duration
- Investments until 31 December 2029.
- How to opt in
- The company must be approved by the competent authority; claim under the MOEA/MOF implementing rules.
- Limits and risks
- Only newly issued shares paid in cash; a sale within 3 years forfeits the relief.
- Legal basis
- 產業創新條例 art. 23-2 (amended 2026), art. 72
- Checked
- 10 November 2026
Dividends: 8.5% credit or separate 28% tax
股利所得：8.5%可抵減稅額或28%分開計稅（所得稅法第15條第4、5項）
OpenFor investors
For modest incomes the 8.5% credit (up to TWD 80,000) can offset the tax on dividends; for high incomes a flat 28%.
Details
- Who
- Residents receiving dividends from Taiwanese companies.
- How it works
- The taxpayer chooses: either dividends are included in total income with a credit of 8.5% of their amount (up to TWD 80,000 per household), or all dividends are taxed separately at 28%.
- How to opt in
- Election in the annual return.
- Limits and risks
- Choosing 28% removes the rent and long-term care deductions; dividends bear the 2.11% supplementary health insurance premium.
- Legal basis
- 所得稅法 art. 15(4)–(5)
- Checked
- 10 November 2026
Exemption of securities transaction gains
證券交易所得停止課徵所得稅（所得稅法第4-1條）
OpenFor investors
Gains on listed securities are free of income tax.
Details
- Who
- Individuals selling shares, bonds and other securities.
- How it works
- Since 1990 securities transaction gains are not subject to income tax (losses are not deductible). Exception — the alternative minimum tax: gains on shares of companies not listed or traded over the counter and on private-placement fund units enter its base.
- How to opt in
- No application.
- Limits and risks
- Losses are not deductible; securities transaction tax is charged separately.
- Legal basis
- 所得稅法 art. 4-1; 所得基本稅額條例 art. 12(1)(3)
- Checked
- 10 November 2026
Exemption of author fees up to TWD 180,000
稿費、版稅等收入免稅（所得稅法第4條第1項第23款）
OpenFor the self-employed
Up to TWD 180,000 a year tax-free.
Details
- Who
- Writers, composers, scriptwriters, comic artists and lecturers.
- How it works
- Fees for manuscripts, royalties, music scores, compositions, scripts, comics and hourly lecture fees are tax-exempt up to TWD 180,000 a year.
- How to opt in
- No application: the amount above the limit is reported in the annual return.
- Limits and risks
- The limit is shared by all such income of the person in the year.
- Legal basis
- 所得稅法 art. 4(1)(23)
- Checked
- 10 November 2026
Tax-free portion of retirement income
退職所得定額免稅（所得稅法第14條第1項第9類）
OpenFor pensioners
A pension of up to TWD 894,000 a year is effectively untaxed.
Details
- Who
- Persons receiving pensions, severance or other retirement payments (other than insurance benefits).
- How it works
- 2026 amounts: a lump sum up to TWD 206,000 × years of service is tax-free, between TWD 206,000 and 414,000 × years half is taxed, above that in full. Periodic pensions are reduced by TWD 894,000 a year. From age 70 the personal exemption is 50% higher (TWD 151,500).
- How to opt in
- No application: computed in the annual return.
- Limits and risks
- If both a lump sum and periodic payments are received, the limits are split proportionally.
- Legal basis
- 所得稅法 art. 14(1), category 9; art. 17(1)(1); MOF notice of 2025-11-27 (2026 amounts)
- Checked
- 10 November 2026
DoubleTaxation