This guide clarifies tax obligations for foreigners working remotely in Taiwan for overseas companies.
Detailed Residency-Based
1. Residency Under 90 Days:
Income from Taiwanese sources is withheld and paid at the source (already taxed).
No need to file an income tax return unless you have income (from sources in Taiwan) that is not subject to withholding, which should be declared and taxed at the prescribed withholding rate before leaving the country.
File before departure or by May 31st of the following year.
2. Residency Between 90 and 183 Days:
Taiwanese income is withheld and paid at the source (already taxed).
No need to file an income tax return unless you have Income (from sources in Taiwan) that is not subject to withholding, including income earned from overseas for services provided in Taiwan. The income should be declared and taxed at the prescribed withholding rate before leaving the country.
File before departure or by May 31st of the following year.
3. Residency Over 183 Days:
Annual income includes salary (including income from overseas for services provided in Taiwan), dividends, interest, professional practice, lease, etc, of the previous year should be reported to the Tax Bureau and paid between May 1st and May 31st.
If leaving mid-year, file the current year’s income before departure.
Common Query Example
Q: I stayed in Taiwan for 100 days in a taxable year, worked for an overseas company, and received a salary from that company. Do I need to file a tax return in Taiwan?
A: Yes, your salary for services provided in Taiwan must be declared. If you leave before the tax filing period, file your return at the prescribed withholding rate before departure. If still in Taiwan during the filing period, file within that time.
How to File as a Foreigner (Alien Individual Income Tax Filing)
Any foreigner with a valid resident certificate and ARC No. issued by the National Immigration Agency may file an individual income tax return online (https://tax.nat.gov.tw/alltax-download.html?id=8) or based on their registered address on their Alien Resident Certificate (ARC). For example, those in Taipei City or Taichung City can visit the respective Taxation Service Division.
Note:
A foreigner, who stays in Taipei City, shall file his/her tax return at the Foreign Taxpayer Service Section, National Taxation Bureau of Taipei, Ministry of Finance: No. 2, Sec. 1, Zhonghua Rd., Taipei City.
Required Documents:
Passport
ARC
Withholding tax statements
Dividend statements (if applicable)
Documentation proving overseas income for services provided in Taiwan
Tax Refund Methods for Foreigners
After verification, a tax refund check is issued for collection. You can authorize someone to collect it on your behalf if needed.
Apply for this during tax filing to have the refund deposited directly into your designated bank account.
By understanding these regulations and preparing the necessary documents, you can ensure compliance with Taiwan's tax laws and receive any tax refunds you may be entitled to.
Copyright © 2024 by Del Sol CPA Services
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