tax

Tax

National Taxation Bureau of Taipei, Ministry of Finance
Income Tax
Income Tax

A: The following two categories of individuals are regarded as “residents of the Republic of China”:

  • An individual who has registered residence in the Household Registration Office and stays in the R.O.C. for 31 days or more in a taxable year.; if an individual who stays in the R.O.C. for more than 1 day but less than 31 days, whose focus of live shall be in the R.O.C.
  • An individual who has no Household Registration in the R.O.C. but stays for 183 days or longer is regarded as a R.O.C. resident.

* Individuals not falling into the above-mentioned two categories are regarded as “non-residents of Republic of China”.

A: The computation of the resident period of a foreigner in the R.O.C. is cumulative and based on the dates stamped in his/her passport or the Certificate of Entry and Exit Dates issued by the National Immigration Agency, Ministry of the Interior. Day of entry to the R.O.C. is not counted as a full day; day of departure from the R.O.C. is counted as a full day.

A: Residents of the R.O.C. who have sources of income in the R.O.C. or who have income derived outside the R.O.C. for service rendered in the R.O.C. shall file income tax with the National Taxation Bureau for that tax year no later than May 31 of the following year. Taxes shall be paid using the progressive tax rate, based on consolidated income minus exemptions and deductions. Any alien (excluding Mainland Chinese) with a valid resident certificate and ARC No. issued by the National Immigration Agency may file an individual income tax return online for the year 2017 from May 1st, 2018 to May 31st, 2018. After downloading the electronic tax-filing program at http://tax.nat.gov.tw, taxpayers can log into the system via a Aliens Citizen Digital Certificate, Registered National Health Insurance Card with password, a Financial Certification Authority (Financial CA), or by entering the ARC No. and Passport/Resident/Permit No. as specified on the ARC as of January 31st, 2018, and follow the instructions given in the program to file income tax returns online. If any document is required for filing, taxpayers shall submit it in person or send it by post before June 11th, 2018.

A: Non-residents of the R.O.C. who have income derived from R.O.C. sources shall have taxes deducted from the taxpayer’s income. Income not subject to withholding, such as property sales, etc., must be reported and tax filed in accordance with the law.
In addition, non-R.O.C. resident individuals staying in the R.O.C. over 90 days in a taxable year and whose income tax shall be declared and computed on the remuneration paid by employers outside the R.O.C. for services rendered in the R.O.C. will have to pay 18 percent tax on their earnings.
The tax rate shall be as follows:

  • The withholding tax rate on dividend distributed by a company, profit distributed by a cooperative, earnings payable by a profit-seeking enterprise organized as a partnership to its partners each year, or earnings from a profit-seeking enterprise organized as a sole proprietorship each year is 20%. (From Jan. 1st 2018, the withholding tax rate is 21%.)
  • The withholding tax rate on salaries is 18%. In the case that the monthly salaries in full amount are equal to or lower than one and a half times of the monthly baseline salary as assessed by the Executive Yuan, the withholding tax rate is 6%.
  • The withholding tax rate on commissions is 20%.
  • The withholding tax rate on interest is 20%. However, the kinds of interest listed in the following shall be withheld in accordance with the associated regulations:
    (1) The portion of the pecuniary amount realized by short-term commercial papers at their maturity in excess of the selling price at their initial issuance is deemed as income from interest and shall be withheld by 15%.
    (2) The interest distributed from beneficiary securities or asset-backed securities issued in accordance with the Financial Asset Securitization Act or the Real Estate Securitization Act shall be withheld by 15%.
    (3) The interest accrued from governmental bonds, corporate bonds and financial bonds shall be withheld by 15%.
    (4) The interest derived from repo (RP/RS) trade whereby an individual purchases short-term commercial papers or securities as listed in the preceding items (1), (2) or (3) shall be withheld by 15% of its net amount of the sale price at maturity in excess of the original purchase price.
  • The withholding tax rate on rentals is 20%.
  • The withholding tax rate on royalties is 20%.The withholding tax rate on cash awards or payments given in contests or prizes for a chance winning is 20%. However, it is tax-exempted when the prize is not more than NT$2,000 from lottery tickets or uniform invoices under the auspices of the government.
  • The withholding tax rate on cash awards or payments given in contests or prizes for a chance winning is 20%. However, it is tax-exempted when the prize is not more than NT$2,000 from lottery tickets or uniform invoices under the auspices of the government.
  • The withholding tax rate on remuneration to a professional practice is 20%.
  • After deducting a regulative exemption, the retirement payments or pensions shall be withheld at the rate of 18%.
  • The withholding tax rate on payment of reward for information or accusation is 20%. Additionally, income that is not subject to the Withholding Code shall be taxed in scope with the following withholding tax rate. This is:
    (1) Income from property transactions shall be filed and taxed at the rate of 20%.
    (2) Profits from occasional trade shall be filed and taxed at the rate of 20%.
    (3) In the case of income from the transfer of tax-deferred stocks, the par value of the stocks shall be deemed as the taxable income of the transfer year. If the actual transfer price of such stocks at the time of sale or the market value of such stocks at the time of bestowal or distribution of estate is lower than the par value, the actual transfer price or the market value shall be deemed the taxable income. Such income shall be filed and taxed at the rate of 20%.
    (4) Miscellaneous income shall be filed and taxed at the rate of 20%.
    (5) Where a trust deed is set up by a profit-seeking enterprise, the beneficiary shall be taxed at the rate of 20% on the value of his/her entitlement to the trust at the year of setting up, and a newly replaced beneficiary shall be taxed in the year of replacement. Furthermore, the beneficiaries shall be taxed at the rate of 20% on the increasing part of the value of their entitlements when the enterprise makes an increment on the trust fund.
    (6) Non-residents who stay in the R.O.C. over 90 days within a taxable year, remunerations paid by employers outside the R.O.C. for services rendered in the R.O.C. Shall be filed and taxed at the rate of 18%.

A: Foreigners who derive income from abroad for services rendered within the R.O.C. must report such income for income tax purposes. Proof of income derived from abroad must be provided to the National Taxation Bureau using documentation from foreign tax authorities, certified accounting firm or legal representative (accountant and attorney must provide the photocopy of his/her license).

A: Individual income tax for foreign blue-collar workers shall be calculated based on tax withholding statement and employment contract.

A: Foreign residents of the R.O.C. shall pay taxes using the progressive tax rate, based on total income minus exemptions and deductions.
For the 2018 tax year, categories of exemptions deductions and basic living expense include:

  • There is an NT$ 88,000 exemption for each taxpayer, spouse and dependent. In the case that taxpayer, his/her spouse or their lineal ascendants having attained seventy years of age, the exemption would be NT$132,000.
  • Deductions:
    (1) General.
    1. Standard deductions: There is an NT$ 120,000 deduction for a single person and an NT$ 240,000 deduction for a married couple filing a joint return.
    2. Itemized deductions: Taxpayers who have expenditures as described below may claim itemized deductions. Original receipts for a to f must be attached.
      1. Donations. Deduction for donations shall not exceed 20% of the taxpayer’s consolidated gross income. Donations made to national defense or governments are fully deductible. Insurance premiums. Premiums paid for life insurance, labor insurance, national annuity insurance, employment insurance and insurance for military personnel, public functionaries and teachers, of the taxpayer, his/her spouse and their lineal dependents filing jointly are deductible. However, the deductions, excluding those for national health insurance, shall not exceed NT$24,000 for each person per year; premiums paid for national health insurance are fully deductible.
      2. Medical and maternity expenses. Must be supported by official documentation.
      3. Losses from disaster. Must be supported by official documentation.
      4. Mortgage interest paid on a loan for an owner occupied dwelling. Limited to NT$ 300,000 and if the taxpayer also claims a special deduction for savings and investment, the special deduction should be subtracted from the above-mentioned interest.
      5. Rental expense: Rents paid for houses in the R.O.C in which the taxpayer, his/her spouse and lineal dependent personally lived, rather than those used by business for profit are deductible. The maximum deduction for rental expense in NT$120,000 for each annual tax return.
    (2) Special.
    1. Losses from property transactions: Not to exceed gains from property transactions.
    2. Special deduction for salary or wages. Each person receiving salary may claim a deduction for his/her salary only up to maximum of NT$200,000. One may fully claim a deduction of the amount of ones salary if it is less than NT$200,000.
    3. Special deduction for savings and investment. Not to exceed NT$ 270,000 per household.
    4. Special deduction for disability. NT$ 200,000 per person per year.
    5. Special deduction for tuition. The Maximum of NT$ 25,000 for each child attending the college/university per year.
    6. Special Deduction for Pre-School Children: For a taxpayer who has children under or equal to five years of age, and his or her circumstances is in compliance with applicable laws, the amount of the deduction for pre-school children is NT$120,000 per child per year.
  • Basic Living Expense Difference: The total basic living expense shall be calculated in accordance with the expense of basic living announced by Central Authority for each person, multiplied by the number of taxpayer, spouse, and dependents in one tax return. If the amount of basic living expense is higher than the sum of exemption, standard deduction (or itemized deduction), and special deduction for salaries or wages, the difference can be used as an additional deduction from the gross consolidated income.(For year 2017, basic living expense for each person is NT$166,000.)

Exemptions, standard deductions and basic living expense for residents of the R.O.C. intending to depart and not return shall be prorated based on the number of days they have resided in the R.O.C. in that tax year.

A: R.O.C. tax laws require tax payment on all income derived from R.O.C. sources. Taxes paid to a foreign country cannot be used as a deduction against taxes owed to the R.O.C. government.

A: Whether the R.O.C. income tax can be credited to the native country’s income tax or not hinges on the income tax law of his or her native country. The alien taxpayer should inquire with tax authorities in his or her native country to make this determination. For the alien taxpayer who is allowed to claim a tax credit in his or her native country, he or she may apply for a tax statement with the National Taxation Bureau of Taipei, National Taxation Bureau of Kaohsiung or any branch, office, service station of National Taxation bureau of the Northern, Central and Southern Area, Ministry of Finance.

A: When an alien taxpayer applies for an Individual Income Tax Certificate, he or she should show his or her passport or alien resident certificate to the National Taxation Bureau of Taipei, National Taxation Bureau of Kaohsiung or any branch, office, service station of National Taxation bureau of the Northern, Central and Southern Area, Ministry of Finance.
If the alien taxpayer cannot apply in person, his or her agent is required to show a proxy statement affixed with the same signature as shown on the taxpayer’s passport and a copy of the page from the passport which bears personal detail and signature need to be submitted to the above-mentioned tax authority; the ID card of the agent shall also be presented at the time of application.

A: As the duration within a taxable year that aliens stay in Taiwan varies, the following three points can be used as a guide for aliens’ reference to file their income tax returns.

  • Aliens staying in Taiwan for less than 90 days, the income derived from sources in the Republic of China shall be withheld according to the withholding rate and paid at the respective sources. The taxpayer need not file an income tax return. However, if one has income gained from property transaction, occasional trade, interest from mortgage, etc., he or she should declare and pay tax prior to departure.
  • For foreigners who stay in Taiwan over 90 days, but less than 183 days, the income derived from sources in the Republic of China shall be withheld according to the withholding rate and paid at the respective sources. However, remunerations derived from overseas for services rendered in Taiwan shall be reported prior to departure.
  • Foreigners staying in Taiwan over 183 days in one taxable year are required to file their annual income of the previous year to the Tax Bureau and pay the corresponding taxes during the period from May 1st to May 31st of the current year. However, those departing the country in the middle of the year are obligated to file income tax return in that year prior to departure.

A: Income tax returns shall be filed with the district National Taxation Bureau of the individual’s local residence as given on their ARC. Those residing in Taipei City or Kaohsiung City shall file with the Foreign Taxpayers Section of the National Taxation Bureau offices. The telephone numbers of head office for each City or District are as follows:

 
National Taxation Bureau of Taipei, Ministry of Finance (02) 2311-3711, extension 1116/1118
National Taxation Bureau of Kaohsiung, Ministry of Finance (07) 725-6600
National Taxation Bureau of the Northern Area, Ministry of Finance (03) 339-6789
National Taxation Bureau of the Central Area, Ministry of Finance (04) 2305-1111
National Taxation Bureau of the Southern Area, Ministry of Finance (06) 222-3111

A: A valid passport, tax withholding statement, dividend statement, certificate of residence and certificate of earnings paid abroad for services performed in the R.O.C. are basic data. Further, if a taxpayer with special qualifications wants to apply for tax exemptions and deductions, the proper documents of evidence should be submitted to the tax authorities for tax assessment.

A:

  • Article 15 of the R.O.C. Income Tax Act stipulates that the income of married couple must be filed jointly except that the married couple could hardly maintained their common living, and have not lived together for more than 6 months conforming to Paragraph 2, Article 1010 of Civil Code, or do not continue their cohabitation for more than 6 months, or one of the married couple have obtained the ordinary protection order conforming to Article 1089-1 of Civil Code. However, the tax due on the spouse’s salary or categorized income may be chosen to calculate separately. In the case of husband and wife living in different areas, can be the taxpayer and file the income tax return jointly at his/her district National Taxation Bureau.
  • For any non-resident of the Republic of China having income from sources in the R.O.C. and whose spouse is resident of the R.O.C., the non-resident may choose to file income tax return jointly with the spouse or file his/her own income at the tax rate of non-R.O.C. residents. If the non-resident chooses to file his/her own income separately, his/her income should not be incorporated in the consolidated income of the resident spouse. Also, the tax withheld and the tax due which the non-resident taxpayer paid cannot be credited to tax of the spouse who is a resident of the R.O.C. and the related exemption and deduction cannot be claimed when calculating the R.O.C. resident spouse’s tax due.
  • In the case that a couple marries or divorces during the interim of the year, they may choose to file income tax returns jointly or individually for that taxable year. Presentation of a certificate of marriage or divorce is required at the time of filing. Further, under the condition of that a double claim is not permitted to be made, the couple may determine which party may claim any related exemption(s); otherwise, such claims are to be filed by the current or former spouse who actually provides/provided financial support.
    Except three different situations mentioned above, a foreign resident of the R.O.C. should file the gross consolidated incomes of him/herself, his/her spouse and his/her dependents jointly.

A: If the alien left the R.O.C. after he/she had been taxed at the flat rate for non-resident status, and then returned in the same taxable year and continued to stay in the R.O.C. up to 183 days or more, the taxpayer for that year should be reassessed at the progressive rate for resident status. Tax previously paid could be credited.

A: Foreigners with R.O.C. resident status in the tax concern shall file individual income tax prior to departure. Exemptions, standard deductions and basic living expenses shall be prorated on the basis of number of days residing in the R.O.C. during that tax year. If the foreigner is unable to file taxes prior to his/her departure, he/she may appoint an individual residing in the R.O.C. to file as representative. Individuals departing the R.O.C. without having income taxes due paid may be detained. If the spouse remaining in the R.O.C. of the departing taxpayer is an R.O.C. citizen, income taxes may be filed jointly in the following year prior to May 31st, exemptions, standard deductions and basic living expenses may be taken as full amounts.

A: Since January 2, 2007:

  • The Taiwan Area Resident Certificate of Hong Kong and Macau citizens, PRC nationals and overseas Chinese is issued by the National Immigration Agency and bears the “ID No.” which is also known as “Taxpayer ID No.”.
  • Alien Resident Certificates are issued by the National Immigration Agency as well, and bears the “ID No.”, which is also known as “Taxpayer ID No.”.
  • Foreigners admitted in Taiwan who are not acquiring any certificate issued by the above mentioned authorities but are obligated to file taxes in accordance with Income Tax Act can apply the “Record of ID No. in the Republic of China” in person or by a proxy from the National Immigration Agency.
    The “Taxpayer ID No.” consists of two letters and eight numerals. The first letter is the area code, the second letter is compiled according to sex and issuing authorities, i.e., A、B, C、D, the third to ninth numerals are serial numbers, and the tenth digit is the check number. The “ID No.” is the code number printed on the “Alien Residence Certificate”.
For instance:
  • Mr. Robert W. Davidson holds an “ALIEN RESIDENT CERTIFICATE", his ID number on this certificate is AC12345678. This means his “Taxpayer’s ID No.” is “AC12345678”.
  • Ms. Carol Lee holds an” ALIEN RESIDENT CERTIFICATE”; her ID number on this certificate is HD12345678. This means her “Taxpayer’s ID No.” is “HD12345678”.

Note: The “ALIEN RESIDENT CERTIFICATE” is issued by the National Immigration Agency. Alien who doesn’t have the “ALIEN RESIDENT CERTIFICATE” can ask the said Agency to issue the “Taxpayer’s ID No.’’

A: If discovered by the National Taxation Bureau, in addition to pay full payment of tax outstanding, penalty shall be levied at not more than three times of the amount outstanding. However, if the individual comes forward before discovery by the National Taxation Bureau, only full payment of tax outstanding shall be levied, with interest.

A: If discovered by the National Taxation Bureau, in addition to pay full payment of tax outstanding, penalty shall be levied at not more than three times of the amount outstanding. However, if the individual comes forward before discovery by the National Taxation Bureau, only full payment of tax outstanding shall be levied, with interest.

A: A taxpayer who fails to pay the income tax due before the deadline stipulated by Income Tax Act must pay a delinquent payment. Delinquent payment is equal to one percent of the amount delayed for each two days, yet with a limitation of 15 percent of the amount delayed. If the taxpayer fails to pay the tax and the surcharge for belated filing for 30 days, the individual is subject to pay the tax due, plus interest calculated on a daily basis at the interest rate quoted by the postal savings for a one-year fixed deposit, and the delinquent payment. Furthermore, the matter should be referred to the enforcement agency for enforcement, and the individual should also bear the cost for performing such enforcement.

A:

  • Notify appropriate central authority to stop transfer of personal property with the value equivalent to the amount of tax owed.
  • In the case where there is an indication that the taxpayer attempts to hide or transfer personal property to avoid tax payment, notice shall be sent out to the courts for the execution of impounding personal property.
  • When the amount a resident taxpayer owed is significant, notice shall be sent out to immigration authorities to detain individual and prevent departure from the R.O.C. However, if the taxpayer has provided adequate guarantee, such restriction shall be lifted.
  • When a non-resident taxpayer owes taxes or has not secured a representative to file his/her individual income tax, the National Taxation Bureau shall notify the immigration authorities to detain the individual and prevent his/her departure from the R.O.C..

A:

  • An individual shall file an individual income basic tax return in accordance with the Income Basic Tax Act unless his or her circumstances do not otherwise include any one or more of the following conditions:
    (1) Non-resident of the R.O.C. (staying less than 183 days within a calendar year in the R.O.C.).
    (2) An individual who does not apply for any investment tax credits in accordance with the laws and does not have any amount within the scope of the provisions of any of the Subparagraphs of Paragraph 1 of Article 12 of Income Basic Tax Act in his or her annual income tax return or current income tax return.
    (3) An individual whose basic income as calculated in accordance with Paragraph 1 of Article 12 of the Income Basic Tax Act is less than NT$6,700,000.
  • An individual whose circumstances do not include any one or more of the conditions mentioned above shall file an individual income basic tax return.

A: The following items should be included in the calculation of the amount of basic income:

  • Net taxable income:
    The net taxable income is calculated in accordance with the Income Tax Act. (Please refer to the Individual Income Tax Return)
  • Overseas income:
    Income, which is derived from sources outside the R.O.C. and is excluded from gross consolidated income, as well as income which is exempted in accordance with Paragraph 1, Article 28 of the Act Governing Relations with Hong Kong and Macau. However, if the aggregate of the two mentioned sources of income in a filing unit is less than NT$1,000,000, it may be excluded from the basic income; otherwise, it shall be filed in the full amount of the aggregate income mentioned above.
  • Life and annuity insurance payments:
    Insurance payments received by the beneficiary, on condition that the beneficiary and the proposer are not the same person and that the life insurance policy and annuities are contracted after this Act came into force. However, in the case of payment made upon the death of the insured person, the part of which aggregate of payments made in a filing unit is equal to or less than NT$33,300,000 may be excluded from the basic income in a calendar year.
  • Income derived from transactions of beneficiary certificates of privately placed securities investment trust funds.
  • Non-cash donations or contributions:
    The amount of non-cash donations or contributions deducted from the gross consolidated income of the individual income tax return.

A:

  • From January 1st, 2016, income derived from house and land transactions should be filed separately, and not be consolidated with the gross consolidated income in accordance with the Income Tax Act.
  • Foreign taxpayer who has any income derived from transactions of house and land, the share of land associated with house or any land which can be issued a construction permit (hereinafter referred to as the “house and land”) which comply with any one of the following conditions shall file an individual house and land transactions income tax return:
    (1) The transferred house and land are acquired on or after January 2nd, 2014, and have been held for a period of no more than 2 years.
    (2) The transferred house and land are acquired on or after January 1st, 2016.
    (3) The transferred right of using a house by creation of superficies are acquired on or after January 1st, 2016.

A: 1.Residents of the R.O.C.:

 
Conditions Tax Rate
Holding periods no more than 1 year 45%
more than 1 year but no more than 2 years 35%
more than 2 years but no more than 10 years 20%
more than 10 years 15%
Conforming to the tax preference for transaction of self-use house and land※ 1. the amount of the exempt income: NT$4,000,000
2. the amount of the taxable income exceeds NT4,000,000:10%

※The tax preference for transaction of self-use house and land: The house and land held by an individual, his/her spouse, or their minor children which comply with the following conditions:

A. The individual, his/her spouse, or their minor children have resided, maintained their household registration at the self-used house, and have owned the house for 6 consecutive years.

B. The house and land have never been used for lease, business operation, or professional practice in the last 6 years before its sale.

C. The individual, his/her spouse, or their minor children have never applied for the preference in the previous 6 years.
2. Non-residents of the R.O.C.:
Conditions Tax Rate
Holding periods no more than 1 year 45%
more than 1 years 35%

A:

  • An individual who has income or losses derived from transactions of house and land, regardless of the taxable amount, shall file every transaction separately, and the income cannot be added to the gross consolidated income. Taxpayers shall file house and land transaction income tax to the tax collection authority the tax return within 30 days from the day following the day on which the ownership transfer registration of house and land is completed, or the transaction day of the right to use a house by creation of superficies,
  • To file house and land transaction income tax, the taxpayer should submit the following documents:
    (1) Individual House and Land transactions Income Tax Return Application Form
    (2) Payment receipt (if there is a tax due)
    (3)Photocopies of both the sales and purchase contracts
    (4) Proof of costs and expense(s)
    (5) Other relevant documents

A: The following items can be a simple guild to the questions above:

  • Failure to file within the time limit: Failure to file within the time limit: A fine in the amount of more than NT$3,000 but not more than NT$30,000 shall be imposed. In the case of failure to file tax, and the amount of taxable income and tax payable are determined by the tax collection authority based on the available data, the taxpayer shall be subject to a fine of not more than three times the amount of tax determined as payable. However, the tax collection authority may choose the severer one between the aforementioned fines as the final punishment.
  • Filing on time but late payment: A delinquency charge in an amount equal to one percent of the amount of said tax shall be charged for every two days of delay. Where the period of delay exceeds thirty days, the case shall be referred to the Administrative Enforcement Agency for enforcement.
  • Omission or misfiling: A penalty of a maximum of twice the amount of the tax evaded.

Note: The aforesaid information is only a general concept, for the detail taxation, the Income Tax Act and Income Basic Tax Act of the R.O.C. shall govern. Clarifications or details regarding tax matters in the R.O.C. can be acquired by visiting the website of the National Taxation Bureau of Taipei, Ministry of Finance at http://www.ntbt.gov.tw, or making a phone call to (02) 2311-3711, extension 1116.

Value-added and Non-value-added Business Tax
Value-added and Non-value-added Business Tax

A:

  • Business tax, in the form of the Value-added and Non-value-added, with the exception of Article 8 and Article 9 of value-added and non-value-added Business Tax Act are exempted from the business tax, shall be levied on the sale of goods or services within the territory of R.O.C. and the import of goods.
  • Foreigners attempt to engage in trade of goods and/or services must first applying for establishment registration with the authority of commercial /company registration. Getting the information provided by the authority of commercial /company registration, the local collection authority in-charge will process business registration initiatively. Business entity selling goods or services shall issue uniform invoices to the purchaser at the time stipulated in "The Table of the Time Limits for Issuing Documentary Evidence of Sales". And business entity, whether or not it has sales, it shall report to the competent tax authority on a two-month basis the sales amount and the business tax payable or overpaid for the preceding period by the 15th of January, March, May, July, September, and November, respectively, every year. The business tax payable, if any, shall be paid to the government treasury in advance. The receipt for tax paid shall be enclosed with the tax return. A business entity, which applies zero ratings, may apply to the competent tax authority for filing a monthly tax return for it sales amount and tax payable or overpaid of the preceding month prior to the fifteenth day of the following month. Once approved to file a monthly tax return, the business entity cannot apply for approval to change the filing period within a year. Business entities of a special nature or small business entities may be exempted from issuing uniform invoices, and may, instead, issue ordinary receipts. The business tax is determined by the competent tax authority, a tax assessment notice shall be prepared and issued by the tax authority in charge and sent to the business entity concerned for payment prior to the end of January, April, July and October.
  • A foreign enterprise, institution, group, or organization having no fixed place of business within the territory of the R.O.C., which sells electronic services to domestic individuals if annual sales amount exceeds NT$480,000, shall apply with the Ministry of Finance for taxation registration at the taxation registration platform since May 1, 2017. The Ministry of Finance approved that the business entity may be exempted from the issuance of uniform invoices to December 31, 2018. And business entity shall report to the competent tax authority on a two-month basis the sales amount and the business tax payable or overpaid for the preceding period by the 15th of January, March, May, July, September, and November, respectively, every year at the “ VAT on Cross-Border Electronic Service” Section of website “eTax Portal, Ministry of Finance”. The business tax payable, if any, shall be paid to the government treasury in advance.

A:

  • Participation in the uniform invoice lottery.
    A lottery is drawn on uniform invoice numbers on the 25th of alternating months and the winning numbers published in the following day’s newspapers. Winners may claim their prize money within three months from the sixth day of the next month after each prize drawing. Prize winners shall bring their passport or alien resident certificate or other ID certificate and the winning uniform invoice receipt to the Chunghwa Post Co., Ltd. in order to receive the prize money.
  • Participation in uniform invoice promotional activities.
    Foreigners may participate in promotional activities sponsored irregularly by the National Taxation Bureau of Taipei, Ministry of Finance with uniform invoice receipts.
Guidelines for Foreign Passengers Claiming VAT a Refund on the Purchase of Goods
                Eligible for VAT Refund
Guidelines for Foreign Passengers Claiming VAT a Refund on the Purchase of Goods Eligible for VAT Refund

Foreign travelers who enter the R.O.C. with the following documents and stay for no more than 183days from the date of Arrival:

  • Passport of a country other than the R.O.C.
  • R.O.C. passports without personal ID. No. recorded.
  • Travel documents.
  • Exit & Entry permit (including license issued by the Immigration Agency of the Ministry of Interior).
  • Temporary entry permit (Note: only eligible for use in claims made at an international airport or port, not applicable for on-site or designated tax refund service outside of airports or ports).
  • Tax rate: 5%
  • Administration charge: 14%
  • Receivable VAT refund= VAT-included price on the receipt÷ 1.05× 0.05 (rounding to the nearest whole number)
  • Net value of receivable VAT refund= receivable VAT refund-receivable VAT refund× 0.14 (rounding down to nearest whole digit)

The goods purchased at the designated TRS-labeled stores and will be carried out of the R.O.C. by the departing travelers are all tax-refundable excluding the following:

  • Items prohibited from being carried on board aircraft or ships for safety reasons (such as flammables, aerosols, corrosives, magnetic materials, poisonous/toxic substances, explosives, briefcases and attache cases with installed alarm devices, oxidizers, radioactive materials, and any other articles or substances that according to the relevant regulations of the International Air Transport Association, may pose a flight safety risk when transported by air).
  • Items in contravention of cabin restriction rules.
  • Unaccompanied goods.
  • Specific goods which have been returned, unpacked, consumed or swapped before departure. Note: hotel bills, restaurant services and duty-free goods are not tax-refundable.

If you have spent NT$2,000 or more in one day purchasing goods at the same designated stores with the “Taiwan Tax Refund”-label, on the purchase date, please show your entry document to the shop assistant to request for “Application Form for VAT Refund”.

  The Tax Refund Service at Airports/ports On-site Small-amount Tax Refund Designated Counter for Tax Refund Service
Where to Apply Tax Refund Service Counters Located at the airports/ports: Authorized “Taiwan Tax Refund”-labeled stores: Designated Counters for Tax Refund Service:
When to apply Before you check in your luggage On the Purchase date Within 20 days before departure
Specific Time Limits Departure within 90 days from the purchase date. Departure within 90 days from the purchase date. Departure within 90 days from the purchase date and 20 days from the date of applicable tax refund.
Required Documents for Tax Refund
  • The original passport. (travel document or exit & entry permit)
  • Invoices or E-invoices certificates.
  • The”Application Form for VAT Refunds”.
  • The original passport. (travel document or exit & entry permit)
  • Invoices or E-invoices certificates.
  • The original passport. (travel document or exit & entry permit)
  • Invoices or E-invoices certificates.
  • The "Application Form for VAT Refunds".
  • International credit cards issued by banks which are designated by international credit card associations.
Special Notices
  • Please arrive at the airport/port three hours before your departure time for tax refund application.
  • Travelers departing from Taoyuan International Airport and having purchased goods cost NT$24,000 or less (Excluding tax refund claimed using on-site small-amount or designated tax refund services.) during their stay, are qualified to claim the tax refund at Airport MRT Taipei Main Station (A1) on the departure date.
  • Travelers who have purchased goods cost NT$24,000 or less at the same store with a “We offer small-amount tax refund service” label on the same day.
  • The following conditions do not apply to “on-site small-amount tax refund”. Please claim your tax refund at the airports/ports on the departure date.
    (1) The total purchase amount has exceeded NT$120,000 during one trip.
    (2) The total purchase amount applied has exceeded NT$240,000 within a calendar year.
  • Travelers holding the “Application Form for VAT Refund” from Designated -TRS-labeled Stores can claim their tax refund at the tax refund service counters nside the stores.which are available in the following four location : Taipei 101, Shinkong Mitsukoshi A8, Pacific SOGO (Zhongxiao), and Hanshin Department Store.
  • Travelers who have to make a security deposit payment with the credit card in advance (7% of the total purchase amount including tax), before departure, please visit the E-VAT Refund machine or Tax Refund Service Counter at the airports/ports to verify if the goods need to be examined by the Customs or not. If the goods are proved disqualified by the Customs, travelers must return the tax refund at the Service Counter and request to cancel the security deposit payment.
  • Those who are unable to carry the goods out of the R.O.C. within 20 days from the date on which tax refund is claimed, shall claim their tax refund at the Designated Tax Refund Service Counters or at the airports/ports.
  • The security deposit payment will be nonrefundable under the following conditions:
    (1) Travelers who did not go to the Customs at the Tax Refund Service Counter at the airports /ports for verification of goods before departure.
    (2) Travelers verified that must go through Customs fail to declare the goods or reject Customs inspection.
Others
  • Goods proven disqualified by the Customs, will not be eligible for the tax refund. If the goods are found unpacked and used or exchanged in private by the Customs, travelers must return the tax refund at the Tax Refund Service Counter at the airports/ports.
  • Travelers should check in the luggage after completing their tax refund procedures and pass through inspection by the Customs.
  • Those who fail to return the tax refund as requested will not be eligible for tax refund application until the tax refund received previously if returned.
  • Goods purchased during the period of stay in Taiwan, but fail to apply for tax refund before departure at the first time, or has applied but failed to receive approval, will not be accepted for tax refund in the future.
  • Travelers who fail to depart as scheduled after receiving the tax refund shall fill out the declaration and clear with the Customs through the “Goods to Declaration” (Red Line) channel to avoid fines when entering the country.
  • In the event of network system failure, the tax refund system will shut down at the Designated “Taiwan Tax Refund”-labeled Stores. Please submit application again when the system has resumed or claim your tax refund at the airports/ports on the departure date.

  • If your goods need to go through the Customs, the machine will print out a checklist. Please visit the customs counter with the following documents and the checklist:
    1. The checklist. (printed by the E-VAT Refund Machine)
    2. “Application Form for VAT Refunds”.
    3. Personal documents (passport, travel documents, exit & entry permit or temporary entry permit
    4. The invoices or E-invoices certificates noted with “tax-refundable goods” or “the last 4 digits of your passport number”
    5. The goods you purchased.
  • You could choose to receive your tax refund through cash, credit cards (VISA, MASTER and JCB), account at China Union Pay or check. If you choose to receive the refund “in cash”, please obtain the receipt “VAT refund application Form” printed out by the machine or given by the Service Counter and go to the designated banks or cash counters located at departure airports/ports for your tax refund.
  • If you choose to receive the refund on credit cards or as checks, you could apply for the refund by transferring it to your credit cards account (VISA、MASTER and JCB or account at China Union Pay); you may also apply for a refund as a check at the Tax Refund Service Counter.

  • Return or Exchange of Goods before Departure:
    1. Travelers must present the following documents to the original store at which the purchase was made:
      1. The original invoices or E-invoices certificates.
      2. The original "Application Form for VAT Refunds" or “VAT Refund Assessment Form”.
    2. After returning or exchanging goods, if the total purchase amount of the TAX-inclusive price for goods is less than NT$ 2,000, the applicant will become ineligible for tax refund, and if there is a tax refund not entitled, it shall return to the original store at which the purchase was made.
    3. Travelers who have received the tax refund from the designated “Taiwan Tax Refund”- labeled Stores, have to visit the tax refund service counter inside the store to submit the tax refund more than entitled or adjusting the advance security payment.
  • Return or Exchange of Goods After Departure:
    1. Travelers shall return the goods with the original invoices or E-invoices certificates and apply to the original designated “Taiwan Tax Refund”-labeled store.
    2. After returning or exchanging goods, travelers must return the tax refund if they have received a tax refund more than they are entitled. Request the certification sheet for the “Foreign Passengers Supplementary Tax Return Payment Statement “as proof of having returned the refund.
    3. Travelers entering Taiwan, carrying goods with duty-paid value worth more than NT$20,000 that have claimed the tax refund before, shall fill out the Customs declaration and clear with the Customs through the “Goods to Declaration” (Red Line) channel to avoid fines.

Note:
  • Private tax refund operators: Chunghwa Telecom
    Free Service Hotline: 0800-880-288
    Website: www.taxrefund.net.tw
  • National Taxation Bureau of Taipei, Ministry of Finance:
    Website: http://www.ntbt.gov.tw
    TEL: (02) 2311-3711 Business Tax Section for further inquiry
Taipei City Revenue Service
Land Value Tax
Land Value Tax

A: Land value tax is collected annually, starting from November 1st to November 30th.

A: Residential land is land registered in the name of the taxpayer, his/her spouse or immediate family, which is used for self-use residence and not for rental or commercial purposes.

A: A landowner must apply for the privileged tax rate before 22nd September and the new tax rate is effective in the current year, otherwise the new tax rate shall not be applied until the next year.

A: To qualify for self-use residential land value tax rate, applicable conditions are as follows:

  • Landowner, spouse or immediate family member must have household registration in the local district.
  • Land is not used as rental or commercial land.
  • The property is rated at no more than 300 square meters within urban areas. or no more than 700 square meters within non-urban areas.
  • All improvements on the property must belong to the owner, spouse or immediate family.
  • Limit of one land for each family of taxpayer, his/her spouse and dependent family members.

A: Self-use residential land is taxed at 0.2%.

A: A copy of both construction improvement documentation and local Alien Resident permit are needed.

Land Value Increment Tax
Land Value Increment Tax

A: At the time of transfer of title, property appreciation tax shall be paid based on the amount of increase in land value.

A: If the sale of self-use residential land by the title owner satisfies the necessary conditions, the land value increment tax thereof shall be collected at a privileged rate of 10%.

A: If the landowner apply for the privileged rate on land value increment tax which is allowed only for once in a life time, the land area should not exceed 3 acres on urban land or 7 acres on non-urban land.
In the case that the landowner sells another self-used residential land when the aforementioned term has been exhausted and wants to enjoy the privileged rate on land value increment tax, the land area is restricted within 1.5 acres on urban land or 3.5 acres on non-urban land.

A: Foreigners whose property qualifies as residential, who have resided in the ROC for at least 183 days during the previous year and who have filed for residency shall apply for the once per person appreciation tax rate on residential land when selling said land.

A: Application for title transfer must be filed with the district Tax Bureau at least 30 days prior to closing. To file appreciation tax, please check the Use Owner-occupied Residential Land Tax Rates check-box in the Land Transfer Current Value Declaration Form, submit description of residential land, copy of contract, as well as copy of ARC and passport.

House Tax
House Tax

A: House tax must be paid between during the month of May.
The tax year for house tax is 1st July through 30th June of the following year.

A: House tax rates are differentiated based on usage of housing:

  • Owner-occupied or charitable leasing for residential use: 1.2%, levied on present site value.
  • Other forms of residential use: For owners with two or less houses, each house shall be levied at 2.4% of the current house value; for owners with more than 3 houses, each house shall be levied at 3.6% of the current house value.
  • Used for business, such as a private hospital, clinic, or freelance firm: 3%, levied on present site value.
  • For non-residential, non-commercial purposes such as public organizations: 2%, levied on present site value.
  • A house that serves a residential and non-residential purpose at the same time, shall have the actual tax levy calculated based on the actual size/acreage used as residential and non-residential purposes. For non-residential purposes, however, tax shall be levied at no less than one-sixth of the total house area.

A: House Tax shall be collected monthly. If there are changes in actual usage conditions or number of houses owned, applications to amend taxes should be made via methods such as telephone, fax, or application forms to the local tax department near the house within 30 days. If the change is reported after the 16th of the month where changes were made, the amended tax rates will be applicable from the following month. If the change is reported before the 15th, the amended tax rate will be applicable for the current month.

Deed Tax
Deed Tax

A: Deed tax must be filed at time of building purchase, and sale, creation of Dien, exchange, bestowal or donation, partition or possession.

A:

  • 6% for purchase and sale.
  • 4% for creation of Dien.
  • 2% for exchange.
  • 6% for bestowal or donation.
  • 2% for partition.
  • 6% for possession.

A: The taxpayer is the new owner of the property.
The taxpayer must file a deed tax return with the district tax office; the approved title transfer must accompany the tax return.
However if a building involved in sale, exchange, bestowal or donation, or partition has never had ownership registered, both parties to the contract shall jointly file the deed tax return.

Vehicle License Tax
Vehicle License Tax

A: Taxes for privately owned vehicles (such as automobiles, scooters and motorcycles with cylinder displacement volume over 150cc) must be paid during April each year. Taxes for commercially owned vehicles are paid twice a year, in April and in October.

A: Motor vehicles are classified into different categories according to vehicle engine displacement or maximum engine horsepower, the tax will be levied based on the vehicle license tax classifications of the tax table.

A: One vehicle owned and used only by a mentally or physically disabled person who bears an identification document issued by the authorities and a driving license. However, individuals holding Disability Cards or certification who have no driver’s license due to mental or physical disabilities, may apply for exemption from license tax. Spouses or relatives from second degree of kinship of the same household registration that provides car usage for a disabled person may also apply. This is limited to one car per disabled person. But vehicles with a total cylinder displacement volume over 2,400 cc or electrically powered engines with horsepower over 262hp or 265.9ps are only exempted the sum of vehicles with a total cylinder displacement volume of 2,400 cc, or horsepower of 262hp or 265.9ps.The excess shall not be exempted.

Stamp Tax
Stamp Tax

A: The items currently subject to the levy of the stamp tax are:

  • Receipts of monetary payments: e.g., the receipts, slip, release, bank book, payment record, and the like issued to identify monetary payments.
  • Deeds for sale of movable.
  • Contracting agreements: Agreements executed for the completion of a specifically ordered work or task, e.g., construction contracts, printing contracts, OEM contracts and the like.
  • Real estate sale, partition and transfer deeds: Deeds or contracts for sale, gratuitous transfer, partition or exchange of real estate or pledge of lien on real estate to be submitted to government agencies for registration.

A:

  • Monetary receipts: affix tax stamps at 0.4% of the amount received.
  • Contracts for sale of movables: affix tax stamps at NT$12 per piece.
  • Contracting agreements: affix tax stamps at 0.1% of the contract price.
  • Contracts of deeds for sale, gratuitous transfer, exchange or partition of the contract price or value of the real estate: affix tax stamps at 0.1% of the contract price.

A:Documents subject to the levy of stamp tax shall be affixed with a sufficient amount of tax stamps at the time of delivery or use.

A: The taxpayer may purchase tax stamps at a post office affix them on the contract, deeds, receipts or documents executed, and after affixation the edges of the stamps should be chopped in order to cancel them. In the case that the tax payable is so large that the method mentioned is impractical, a taxpayer may apply to the local tax revenue department for issuance of a tax payment notice and pay the stamp tax to a designated financial institution, then affix the payment receipt to the taxable documents.

 
Taipei Revenue Service Branches
Office Phone Number Fax Address
Email
Main Office 2394-9211
6632-7979
2351-4382 NO.7-2, Beiping E. Rd., Zhongzheng District. Taipei City 10051
d03010990@mail.taipei.gov.tw
Zhongzheng Branch 2393-9386
6630-0101
2393-0994 1F., NO.7-2, Beiping E. Rd., Zhongzheng District. Taipei City 10051
d03010110@mail.taipei.gov.tw
Datong Branch 2587-3650
6619-5511
2593-0103 3F.-2, No.57, Changji ST., Datong District, Taipei City 10363
d03010120@mail.taipei.gov.tw
Zhongbei Branch 2503-9221
6608-5252
2501-3265 3F., No.367, Songjiang Rd., Zhongshan District, Taipei City 10402
d03010070@mail.taipei.gov.tw
Zhongnan Branch 2567-6710
6619-6565
2531-8484 3F., No.222, Jinzhou St., Zhongshan District, Taipei City 10467
d03010060@mail.taipei.gov.tw
Wanhua Branch 2302-1191
6632-9292
2336-7245 6F., No.120, Sec. 3, Heping W. Rd., Wanhua District, Taipei City 10855
d03010150@mail.taipei.gov.tw
Xinyi Branch 2723-5067
6639-9922
2722-3867 3F., No.15, Sec. 5, Xinyi Rd., Xinyi District, Taipei City 11049
d03010090@mail.taipei.gov.tw
Songshan Branch 2570-3911
6601-2727
2577-9893 3F., No.178, Sec. 3, Bade Rd., Songshan District, Taipei City 10555
d03010080@mail.taipei.gov.tw
Opportunity Tax Section in Motor Vehicles Office 2753-4416 2767-9278 3F., NO.21, Sec. 4, Bade Rd., Songshan District, Taipei City 10561
d03010990@mail.taipei.gov.tw
Nangang Branch 2783-4254
6616-0202
2782-3099 3F., No.360, Sec. 1, Nangang Rd., Nangang District, Taipei City 11579
d03010170@mail.taipei.gov.tw
Wenshan Branch 2234-3518
6629-8585
2234-3519 4F., No.220, Sec. 3, Muzha Rd., Wenshan District, Taipei City 11606
d03010160@mail.taipei.gov.tw
Daan Branch 2358-1770
6630-0055
2341-2589 3F., No.86, Sec. 2, Xinsheng S. Rd., Daan District, Taipei City 10650
d03010100@mail.taipei.gov.tw
Shilin Branch 2831-8101
6611-0909
2831-8106 No.41, Meilun St., Shilin District, Taipei City 11160
d03010130@mail.taipei.gov.tw
Opportunity Tax Section in Motor Vehicles Office,Shilin Station 2831-5444 8866-3255 2F., No.80, Sec. 5, Chengde Rd., Shilin District, Taipei City 11169
d03010140@mail.taipei.gov.tw
Beitou Branch 2895-1341
6610-9797
2895-2132 3F., No.30, Xinshi St., Beitou District, Taipei City 11230
d03010140@mail.taipei.gov.tw
Neihu Branch 2792-2059
6601-5353
2791-8544 2F., No.99, Sec. 6, Minquan E. Rd., Neihu District, Taipei City 11466
d03010180@mail.taipei.gov.tw
◎If you have questions regarding local taxes, please contact the nearest office.
For more information