Taiwan (TW)

A safe, democratic, tech-forward island with excellent public healthcare, dense transit, world-class food culture, and a strong base for East Asia.

Capital: Taipei

Region: Asia

Language: Mandarin Chinese

Currency: TWD (NT$)

Cost of living: Moderate (index 58)

Emergency: 110

Tax & Payslip Guide

Understanding your taxes in Taiwan — tax year Calendar year.

📅

Tax Year

Calendar year

⏰

Filing Deadline

Typically May 1-31 for individual income tax returns for the previous year; the 2026 tax year is generally filed in May 2027.

🧾

VAT (Standard)

📊 Income Tax Brackets

Income from	Income to	Rate	Notes
0	610,000	5%	2026 resident individual income tax first bracket after deductions and exemptions.
610,001	1,380,000	12%	2026 second bracket; official progressive difference is NT$42,700.
1,380,001	2,770,000	20%	2026 higher middle bracket; official progressive difference is NT$153,100.
2,770,001	5,190,000	30%	2026 high-income bracket; official progressive difference is NT$430,100.
5,190,001	∞	40%	2026 top individual income tax bracket; official progressive difference is NT$949,100.

🏛️ Social Contributions

National Health Insurance (NHI / 全民健康保險)

Employee: 1.551% of insured salary (= 30% of the 5.17% general premium rate). At NT$29,500/month insured salary: ~NT$458/month. Each registered dependant adds one additional full employee share. Insured salary brackets range from NT$26,400 to NT$182,000/month (2026 NHI tables).

Employer: 3.102% of insured salary (= 60% of 5.17%). Government subsidises 10% (0.517%). Total NHI premium for one employee: 5.17% of insured salary bracket.

Mandatory universal health insurance covering outpatient, inpatient, dental, Chinese medicine and prescriptions. Low copays (NT$50–420 per visit). 2026 general premium rate: 5.17% (unchanged since 2021).

Labour Insurance (勞工保險)

Employee: ~2.3% of insured salary (employee 20% of the ordinary risk premium of ~11.5%). At NT$29,500/month: ~NT$678/month. Occupational injury premium (~0.21%) is 100% employer-paid. Insured salary cap: NT$45,800/month (2026).

Employer: ~8.05% of insured salary (70% of ordinary risk ~11.5%). Government pays 10% of ordinary risk (~1.15%). Total employer cost: ~8.05% + 0.21% occupational = ~8.26%.

Covers work injury, ordinary sickness (70% of insured salary from day 4), maternity (60-day lump sum), disability, old-age pension (15+ insurance years), and death. Foreign employees with valid work permit must be enrolled from day 1.

Labour Pension (勞工退休金)

Employee: Voluntary 0–6% of monthly wages (employee's choice). Pre-tax deduction — reduces taxable income by up to NT$54,000/year. NOT a mandatory employee deduction.

Employer: Mandatory 6% of actual monthly wages (not capped at insured salary bracket). At NT$29,500/month: NT$1,770/month. At NT$60,000/month: NT$3,600/month. This is an employer-only cost — cannot be deducted from employee salary under any arrangement.

Defined-contribution individual account held at BLI, portable across employers. Foreign ARC holders working under Labour Standards Act are covered. Account earns minimum 2.479% (2026 2-year fixed deposit benchmark). Withdrawable from age 60.

Employment Insurance (就業保險)

Employee: 0.2% of insured salary (employee 20% of the 1% total premium). At NT$29,500/month: ~NT$59/month.

Employer: 0.7% of insured salary (employer 70%). Government pays 0.1%.

Covers unemployment benefit (60% of insured salary × up to 6 months), parental leave allowance (60% × up to 6 months per parent), and vocational training living allowance. Foreign workers enrolled in Labour Insurance are eligible for parental leave allowance.

🛒 VAT Rates

Standard

None broad-based

Reduced

Certain exempt or zero-rated transactions

Super reduced

Taiwan Business Tax is commonly referred to as VAT/GUI tax; standard rate remains 5% for most taxable goods and services.

🧾 Sample Payslip Decoder

Gross Salary NT$100,000/month

Gross salary + NT$100,000

Employee NHI premium (illustrative) - -NT$1,551

Employee labour insurance (illustrative) - -NT$1,200

Income tax withholding (illustrative) - -NT$5,000

Net Salary (Take-home) NT$92,249/month

Actual deductions depend on insured salary bracket tables, number of dependants, tax residency status, employer supplemental NHI contribution, and annual income tax reconciliation. Employer also contributes approximately 6% of monthly salary to Labour Pension (勞工退休金) — this does not appear on the employee payslip. The annual income tax return (filed May each year) reconciles any over- or under-withholding.

🌍 Special Expat Tax Rules

Foreign special professionals may qualify for preferential taxation on 50% of income above NT$3,000,000 for qualifying years if conditions are met. Employment Gold Card holders should review this carefully with a CPA.

📋 Double Tax Treaties

Taiwan has tax agreements with many jurisdictions, though treaty coverage is more limited than large OECD countries. Check whether your home jurisdiction has an agreement and whether relief is available.

National Taxation Bureau / Ministry of Finance

https://www.ntbt.gov.tw/

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