How are days counted for the 183-day residency test in Taiwan?

Days are counted using entry and exit stamps in your passport, or a Certificate of Entry and Exit Dates from the National Immigration Agency. The arrival date is excluded from the count; the departure date is included. Multiple trips within the calendar year are aggregated -- all individual stays between January 1 and December 31 are added together to reach the 183-day threshold.

What income is taxable for a Taiwan resident alien?

Resident aliens (183 or more days) are taxed on Taiwan-source income and on remuneration paid by any employer -- including an overseas employer -- for services physically performed in Taiwan. Foreign-source income earned for work performed outside Taiwan generally falls outside regular income tax but is included in the Income Basic Tax calculation if it equals or exceeds TWD 1 million per filing unit.

What is the flat tax rate for non-residents present 91-182 days?

Non-resident aliens present in Taiwan for more than 90 days but fewer than 183 days in a calendar year are taxed at a flat 18% on Taiwan taxable salary income regardless of where the remuneration is paid. This differs from the shorter-stay category (90 days or fewer) where the 18% withholding applies only to salary paid by a Taiwan-registered entity. No personal exemptions or standard deductions are available to non-residents.

When does the Income Basic Tax apply to a resident's foreign-source income?

The Income Basic Tax (IBT) applies to Taiwan residents only when two conditions are both met: the individual's overseas income for the year equals or exceeds TWD 1 million per filing unit, and the resulting basic income (adjusted income plus overseas income plus certain other items) exceeds the TWD 7.5 million exemption. The IBT rate is 20%, and only the excess above TWD 7.5 million is taxed. If regular income tax already exceeds the IBT amount, no additional IBT is owed.

What is the annual tax return filing deadline for resident aliens in Taiwan?

Resident aliens file their annual income tax return during May 1 to May 31 of the year following the tax year -- for example, 2025 income is reported in May 2026. Aliens leaving Taiwan before the year-end with no intent to return must file a pre-departure return approximately 10 days before departure. The Ministry of Finance's eTax portal supports online filing in English using a taxpayer ID number plus passport or Alien Resident Certificate number.

Expat Tax Residency in Taiwan — Rates, Rules & Filing

Taiwan's individual income tax framework, administered by the National Taxation Bureau under the Ministry of Finance, draws a clear line at 183 days of calendar-year presence. Foreign nationals who cross that threshold in any given year (January 1 to December 31) are treated as residents and taxed on Taiwan-source income at progressive rates ranging from 5% to 40%, plus any overseas remuneration earned for services physically performed in Taiwan. Those who do not cross the threshold pay a flat 18% withholding on qualifying Taiwan salary. The rules are set out in the Income Tax Act (ITA) of the Republic of China and supplemented by annual National Taxation Bureau guidance.

How does Taiwan determine tax residency for foreign nationals?

Taiwan applies two routes to resident status. The first route -- the domicile-plus-habitual-residence test -- covers individuals who hold household registration (hukou) in Taiwan and habitually reside there; this route principally applies to Taiwan nationals and long-settled residents. The second route -- the 183-day calendar-year presence test -- is the operative standard for most foreign expats. Under this test, any foreign individual who is physically present in Taiwan for 183 days or more within a single calendar year (January 1 to December 31) is classified as a resident for that year. The National Taxation Bureau instructs taxpayers to count days using entry and exit stamps on their passport or, where unavailable, a Certificate of Entry and Exit Dates issued by the National Immigration Agency. Critically, the arrival date is excluded from the count but the departure date is included; multiple entries and exits are aggregated across the full year. Taiwan country overview

What are the three presence-based tax categories?

The Income Tax Act creates three distinct categories based on days present in Taiwan.

Days present in Taiwan (calendar year)	Status	Rate applied to Taiwan salary income
183 or more	Resident	Progressive 5%-40% on net consolidated income
91 to 182	Non-resident (mid-stay)	Flat 18% regardless of where remuneration is paid
90 or fewer	Non-resident (short-stay)	Flat 18% withholding, but only on income paid by a Taiwan-registered entity

For tax year 2025 (returns filed May 2026), PwC Worldwide Tax Summaries confirms the five progressive brackets for residents: 5% on net taxable income up to TWD 590,000; 12% on TWD 590,001 to 1,330,000; 20% on TWD 1,330,001 to 2,660,000; 30% on TWD 2,660,001 to 4,980,000; and 40% on income above TWD 4,980,000. For tax year 2026 (returns filed May 2027), the Ministry of Finance eTax Portal published updated brackets effective April 2026: 5% up to TWD 610,000; 12% up to TWD 1,380,000; 20% up to TWD 2,770,000; 30% up to TWD 5,190,000; and 40% above TWD 5,190,000.

What happens when a non-resident crosses 183 days mid-year?

If a foreign national enters Taiwan as a non-resident (subject to flat 18% withholding) and subsequently accumulates 183 days within the same calendar year, the National Taxation Bureau's instructions state that the individual's tax liability for the entire year is reassessed at the progressive resident rates. Any flat-rate withholding tax previously withheld during the year is credited against the resulting progressive-rate liability. This mid-year transition rule prevents taxpayers from permanently avoiding progressive rates simply because earlier months in the year were subject to withholding. Practically, the reassessment occurs when the individual files the annual income tax return (May 1 to May 31 of the following year) or, for individuals leaving Taiwan before year-end with no intent to return, when they file a pre-departure return approximately 10 days before departure.

What is the Income Basic Tax and when does it apply to residents?

Taiwan imposes a supplementary Income Basic Tax (IBT), functionally analogous to an alternative minimum tax, on resident individuals with substantial income including foreign-source amounts. The National Taxation Bureau of Taipei's published Q&A on the IBT specifies that foreign-source (overseas) income equal to or exceeding TWD 1 million per filing unit must be included in the individual's basic income calculation. The IBT is then computed as: (basic income minus TWD 7.5 million) multiplied by 20%. The resulting IBT is compared to the taxpayer's regular income tax liability; the taxpayer pays whichever is higher. Foreign-source income below TWD 1 million per filing unit, or total basic income at or below TWD 7.5 million, falls entirely outside the IBT charge. PwC Taiwan's current IBT guidance (last reviewed January 2026) confirms the TWD 7.5 million exemption threshold and the 20% flat IBT rate. The interaction means that most resident expats with modest foreign-source income -- for example, a small foreign bank account or a few thousand TWD in dividends -- will not encounter IBT at all; the charge targets individuals with materially larger global income profiles.

What deductions and exemptions are available to resident filers?

For tax year 2025, the National Taxation Bureau of Taipei's published exemption and deduction table confirms the following amounts available to resident alien filers. The personal exemption is TWD 97,000 per taxpayer, spouse, and each dependent; the enhanced exemption for taxpayers, spouses, or lineal ascendants aged 70 or older is TWD 145,500. The standard deduction for single filers is TWD 131,000; for married couples filing jointly it is TWD 262,000. A basic living expense floor of TWD 213,000 per person (2025 figure) is deducted where total exemptions and standard deductions fall below that household floor. Itemized deductions (donations, insurance premiums, medical expenses, mortgage interest capped at TWD 300,000, and housing rent up to TWD 180,000) may substitute for the standard deduction where the total exceeds it. Non-resident filers under the 91-182-day and 90-or-fewer-day categories do not access these deductions; the 18% flat rate applies to gross taxable salary without adjustment.

Determining the correct residency category -- and navigating the mid-year reassessment, IBT exposure, pre-departure filing obligation, and deduction eligibility -- involves fact-specific judgements that vary by employment contract structure, income source mix, and prior-year residency history. A qualified tax professional registered in Taiwan, familiar with the Income Tax Act of the Republic of China and current National Taxation Bureau guidance, is best placed to assess your individual position. See the Taiwan country overview for additional jurisdiction context.

Expat Tax Residency in Taiwan

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