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Taiwan
Resident companies and Taiwan branches of foreign companies are subject to a corporate income tax rate of 20%.
Note, an additional profit retention tax of 5% applies to earnings of a corporation that are undistributed by the end of the following year. Taiwan branches of foreign companies are not required to pay this tax.
See the 2023 Corporate Income Tax rates below:
| Taxable income (KRW) | Tax rate | |
|---|---|---|
| 0 – 120, 000 | 0% | |
| 120,001 and over | 20% |
Employees in Taiwan must pay the applicable rate of withholding tax, which is progressive and ranges from 5% to 40% depending on income:
| Taxable Income (NTD) | Tax rate 2023 |
|---|---|
| 0 – 560,000 | 5% |
| 560,001- 1,260,000 | 12% |
| 126,000,00 – 2,520,000 | 20% |
| 2,520,001-4,720,000 | 30% |
| 4,720,000+ | 40% |
In Taiwan, employers are required to make several compulsory contributions on behalf of their employees. These contributions include Labor Insurance, National Health Insurance, Labor Pension and the Employee Stabilization Fund.
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| Contribution item | Contribution rate |
|---|---|
| Labor Pension | 6% (additional payments voluntary) |
| National Health Insurance | 5.17% |
| Labor Insurance | 1 % |
| Employment Stabilization Fund | Varies, but is around 0.1% of the monthly salary. |
Employees in Taiwan must pay the applicable rate of withholding tax from their salary. Additionally, employees must make contributions to pension and health insurance funds. Health insurance is mandatory for all employees in Taiwan with an annual contribution rate of 8%–17%. Pension contributions are mandatory for the employerr, but optional for the employee up to 6%.
Employee contributions for 2023:
| Contribution item | Contribution rate |
|---|---|
| National Pension Fund | 0-6% (voluntary) |
| National Health Insurance | 3.545% |
| Labor Insurance | 2% |
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Your business can easily hire employees in Taiwan (China) without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
The Ministry of Finance is responsible for taxation in Taiwan, and the National Taxation Bureau is the administrative authority for taxation.
Yes, in addition to withholding income tax, employers in Taiwan must deduct various social contributions such as pension, labor insurance, and health insurance contributions. These are similar to US payroll tax contributions.
Payroll taxes and mandatory contributions are deducted at source from monthly payroll.
Taiwan – 2023 CIT tax rates
