Taiwan Income Tax for Newcomers: The 183-Day Rule, Filing Season, and Rates
Taiwan's income tax system is straightforward once you know the two facts that govern everything: whether you spent 183 days in Taiwan during the calendar year, and that returns for that year are filed the following May. This guide covers tax residence, the filing season, current progressive rates, how foreign income is treated, and the documents newcomers need to file.
Tax residence: the 183-day rule
Taiwan taxes individuals on a territorial-plus-residence basis, and residence for tax purposes hinges on a single threshold:
- Resident: you were domiciled in Taiwan, or you were present in Taiwan for 183 days or more in the calendar (tax) year.
- Non-resident: you were present for fewer than 183 days.
The 183 days are counted on physical presence within the calendar year (January 1–December 31), not on your visa type. A newcomer who arrives in August and stays through year-end (~150 days) is a non-resident for that first year, then becomes a resident the following year if they remain.
Why it matters: residents are taxed at progressive rates on Taiwan-source income and can claim personal exemptions and deductions. Non-residents are taxed at flat withholding rates on Taiwan-source income — 18% on salary income and 20% on most other income — with no deductions or exemptions, and foreign-source income is not taxed at all for non-residents.
Filing season: May 1–31
Tax residents file an annual individual income tax return for the previous calendar year between May 1 and May 31 of the current year. If May 31 falls on a weekend or public holiday, the deadline moves to the next working day.
- Income earned in 2025 → filed May 2026 (the alien online filing window ran May 1 to June 1, 2026).
- Income earned in 2026 → filed May 2027.
Returns can be filed online (the eTax portal supports English and accepts alien filers with a valid ARC number), at a National Taxation Bureau office, or by mail. Aliens with a valid ARC issued by the National Immigration Agency may file online; keep your ARC number and withholding vouchers handy. Extensions are generally not granted.
Employers withhold tax from salaries monthly, so filing in May is mostly a reconciliation: you may owe a balance or receive a refund.
Progressive rates: the current brackets
Residents pay tax on net consolidated income — gross Taiwan-source income minus the personal exemption, deductions, and the salary special deduction — at these progressive rates (each bracket's rate applies only to income within that bracket):
Tax year 2025 (filed May 2026):
| Net taxable income (NT$) | Rate | Progressive difference |
|---|---|---|
| 0 – 590,000 | 5% | 0 |
| 590,001 – 1,330,000 | 12% | 41,300 |
| 1,330,001 – 2,660,000 | 20% | 147,700 |
| 2,660,001 – 4,980,000 | 30% | 413,700 |
| 4,980,001 and above | 40% | 911,700 |
Tax year 2026 (filed May 2027) — brackets adjusted upward for inflation:
| Net taxable income (NT$) | Rate | Progressive difference |
|---|---|---|
| 0 – 610,000 | 5% | 0 |
| 610,001 – 1,380,000 | 12% | 42,700 |
| 1,380,001 – 2,770,000 | 20% | 153,100 |
| 2,770,001 – 5,190,000 | 30% | 430,100 |
| 5,190,001 and above | 40% | 949,100 |
To compute the tax: multiply taxable income by the top rate that applies, then subtract the progressive difference. The bracket thresholds and the personal exemption are adjusted periodically — for 2026, the personal exemption is NT$101,000 per person (NT$151,500 for those 70 or older), the standard deduction is NT$136,000 (single) / NT$272,000 (married filing jointly), and the salary special deduction is NT$227,000. Verify the current year's figures on tax.nat.gov.tw before filing.
Foreign income: the basics
Taiwan does not tax foreign-source income under the regular consolidated income tax. Instead, it is picked up by the Income Basic Tax (IBT) — an alternative minimum tax. The mechanics:
- If your household's aggregate overseas income is NT$1,000,000 or more in the year, the full amount (not just the excess) is added into "basic income," which also includes your regular net taxable income plus other add-back items.
- You owe IBT only if your total basic income exceeds NT$7,500,000.
- The IBT is (basic income − NT$7,500,000) × 20%.
- You pay the higher of the regular income tax and the IBT — never both.
In practice, most newcomers with ordinary foreign savings interest or a modest foreign side income never trigger the IBT; it bites at high income levels. Foreign tax credits are available against the IBT for taxes paid abroad. And note: qualifying foreign special professionals (including Gold Card holders) can have overseas income excluded from basic income under the Foreign Professionals Act tax incentive — see the Gold Card article.
Newcomers from countries with a tax treaty with Taiwan should check whether the treaty changes withholding or residence outcomes for their situation.
Documents newcomers need
To file your first return, gather:
- ARC (Alien Resident Certificate) — your ARC number is your taxpayer identity for online filing.
- Passport — for identity verification and the day-count record if residence is disputed.
- Withholding tax vouchers (扣繳憑單) — issued by your employer each year; shows salary paid and tax withheld.
- Proof of deductions claimed — e.g., donation receipts, insurance premium receipts, rent or mortgage documents if itemizing.
- Overseas income records — bank or brokerage statements, if your household's foreign income reaches the NT$1M reporting threshold.
- Spouse/dependent documents — marriage and birth certificates (with certified Chinese translations if not in Chinese/English) if claiming dependent exemptions.
Keep records for at least seven years — the tax authority can audit prior returns.
Common newcomer pitfalls
- Assuming arrival year = resident. If you arrive mid-year, count your days; under 183 days means non-resident treatment (flat 18% withholding on salary, no deductions) for that year.
- Missing the May window. No extension is granted; late filing draws surcharges.
- Forgetting the IBT. High earners with foreign income should run the basic-income calculation rather than assume only the regular tax applies.
- Not updating withholding. If your employer withholds at non-resident rates after you've crossed 183 days, reconcile at filing — or ask payroll to adjust.
Frequently asked questions
I arrived in September 2026. Am I a tax resident for 2026?
Almost certainly not: September to December is roughly 120 days, well under 183. You'll be taxed as a non-resident for 2026 (flat 18% withholding on Taiwan salary) and become a resident for 2027 if you stay.
Can I file in English?
Yes — the eTax portal offers an English interface, and the National Taxation Bureau publishes English instructions for alien individual income tax. Supporting documents in other languages may need translation.
Do I pay tax on money I earned abroad before moving to Taiwan?
Foreign-source income earned while you were a non-resident is not taxed by Taiwan. Once you are a resident, foreign income is only reached through the Income Basic Tax, and only above the NT$1M inclusion threshold and NT$7.5M basic-income threshold.
My spouse doesn't work. Do we file jointly?
If both spouses resided in Taiwan for more than 183 days in the year, joint filing is required. A non-working spouse can be claimed as a dependent (personal exemption).
Where do I actually file?
Online via the eTax portal (etax.nat.gov.tw), or in person at your local National Taxation Bureau office. Alien online filers need a valid ARC number.
Sources
- Ministry of Finance eTax Portal, Instructions for Alien Individual Income Tax: https://www.etax.nat.gov.tw/etwmain/en/announcement/alien-individual-income-tax/instructions
- PwC Tax Summaries, Taiwan — Individual: Taxes on personal income (2025 brackets): https://taxsummaries.pwc.com/taiwan/individual/taxes-on-personal-income
- National Taxation Bureau of Taipei, Progressive Tax Rates for 2026 (official): https://www.ntbt.gov.tw/English/multiplehtml/3f18d2625aea4187b0d90e9b929afe4c
- Invest Taiwan, Introduction of Taiwan Tax System — Individual Income Tax (IBT/AMT): https://investtaiwan.nat.gov.tw/showPage?lang=eng&search=56
- 104 Job Bank, 2026 Tax Filing Guide for Foreigners in Taiwan: https://go.104.com.tw/expats/article/taiwan-tax-filing-guide-for-foreigners/
This article is general information about Taiwan's individual income tax system, not tax or legal advice. Rates, thresholds, and filing rules change; confirm current figures on tax.nat.gov.tw or etax.nat.gov.tw and consult a licensed tax professional for your situation.