When to file?
The tax filing period begins May 1 and ends May 31 each year. No extensions are offered.
Tax residents must file during this period
If you intend to leave Taiwan and not return in the same year, you must file a tax return before departure or appoint a tax agent to do so on your behalf.
If you are in Taiwan under 90 days you are not required to file a tax return unless you have Taiwan-sourced income NOT subject to withholding tax.
If you are in Taiwan between 90 and 183 days you must file a tax return before you depart, or appoint a tax agent to file on your behalf.
If you are a short-term visitor to Taiwan and need a tax agent to file on your behalf, the specialists at Del Sol CPA and Associates are happy to help. Don’t hesitate to reach out.
How to file?
Single or Married
If you are married, and you and your spouse are both tax residents, you must file jointly. Filing jointly can get complicated! Especially if you are a foreigner and your spouse is Taiwanese. We strongly suggest consulting a tax professional for advice on how to prepare the most optimal tax return for your situation.
Filing in Person or Online
Although filing and paying taxes is never fun, one upside is that the Taiwan National Taxation Bureau makes it quite painless and straightforward for foreigners. The foreign department of the NTB office in Taipei is efficient, helpful, and staffed by well-trained, English-speaking tax officials who can help you complete the process.
In many cases, you can simply show up at the NTB office with your ARC and Passport, and the staff will help you prepare and submit your entire tax return on the spot! Be advised, however, that during tax season, the office can get quite busy – expect long wait times, especially in the afternoons and towards the end of the month.
Note: If you live outside of Taipei, you may be required to visit the NTB office in your city of residence.
Pro tip: If you want to file directly at the office, show up early in the month and early in the morning. Wait times will be much shorter!
If your tax situation is more complex, or you wish to add itemized deductions to your return, consider downloading the form first or filing online. Regardless of your filing method, if you intend to claim itemized deductions be sure to prepare all the necessary documentation required to support your claim.
Tax filing forms for individuals are available on the NTB Website:
An e-filing system is also available for residents. Note that if you e-file, you may still be required to submit paper documents to support your deduction and exemption claims. You may also need to obtain a Financial Certification Authority from your local bank, which contains all the information about your recorded income and wages for the tax year. Your National Health Insurance card can also be used for this purpose.
Without these, you’ll need to input your income data manually, which can be risky if you make mistakes! For both the Financial CA and your NHI card, you will need to use a specialized smart card reader to log into the e-filing system.
Of course, the easiest way to deal with your taxes is to leave them to a professional! At Del Sol CPA and Associates, one of our specialties is making the Taiwan tax filing process as simple as it can be for our customers, even if you’re married filing jointly or have a complex financial situation.
How to pay?
Paying your taxes
For those who file at the NTB office, paying in cash or by credit card is the most straightforward method. You can also pay your taxes using the following methods:
By cash or check at any bank (except the post office)
By cash at convenience stores (below TWD 30,000)
By ATM, Financial CA, or NHI card (when e-filing, and you will need a smart card reader)
By credit card (when e-filing)
What If I Don’t File My Taiwan Taxes, or I File Them Late?
If you file your taxes late, you will be charged interest on unpaid taxes (the rate is determined annually). Late payments can be made at convenience stores or ATMs up to three days after the due date without incurring penalties. Otherwise, you will need to pay at a bank or at the NTB office directly.
If you underreport income, penalty fees up to twice the value of the unpaid taxes will be incurred. The penalty is increased to three times if no tax return is filed at all.
Helpful resources
Copyright © 2023 by Del Sol CPA Services
Comments