Taiwan Corporate Tax Guide (營利事業所得稅)

Taiwan's corporate income tax (營利事業所得稅) is a flat 20% for incorporated businesses. Unincorporated businesses (sole proprietorships, partnerships) are taxed at 10% on retained profits. Generous R&D tax credits and investment incentives reduce effective rates. Filing is annual with a 5-month deadline after year-end. All amounts in TWD.

Taiwan's 營利事業所得稅 (Profit-Seeking Enterprise Income Tax) applies to all companies incorporated in Taiwan (中華民國). The system is administered by the Ministry of Finance (財政部). A dividend imputation system prevents double taxation of corporate profits distributed to shareholders. For related guidance, see our Personal Tax Guide →, VAT Guide →, and Investment Income Guide →.

Corporate Tax Rate — 20%

Standard rate: A flat 20% on taxable income for incorporated enterprises (公司組織). This rate applies to both publicly listed and privately held companies.
Unincorporated business rate — 10%: Sole proprietorships and partnerships (獨資合夥) are taxed at 10% on retained earnings. However, the profits are passed through to the owner(s) and included in their personal IIT return, with the 10% business tax creditable against the owner's personal tax liability.
Tax-exempt income: Certain income is exempt from corporate tax, including inter-corporate dividends (100% exemption under the imputation system), and income from specific government-approved incentives (e.g., emerging industries, free trade zones).

R&D Tax Credits

R&D investment credit: Companies can claim a tax credit of 15% to 20% of qualifying R&D expenditures, capped at 30% of the corporate income tax due for the year.
Qualifying R&D: Must be conducted in Taiwan, be technologically innovative, and relate to the company's core business. Costs include salaries of research personnel, equipment depreciation, materials, and outsourcing to approved research institutions.
Carryforward: Unused R&D credits can be carried forward for up to 5 years (formerly 10 years for some categories).
Automation and smart manufacturing: Additional credits of up to 5% are available for investments in intelligent machinery and 5G/cybersecurity systems (subject to sunset provisions).

Dividend Imputation System

Taiwan operates an integrated imputation system (兩稅合一) to prevent double taxation of corporate profits. Corporate income tax paid is imputed to shareholders via the Imputation Credit Account (ICA / 股東可扣抵稅額帳戶).
When a company distributes dividends, shareholders receive a tax credit for the corporate tax already paid on those profits. This credit offsets their personal IIT liability or is refundable.
As of 2026, the imputation credit ratio is approximately 33.33% (meaning TWD 33.33 of tax credit for every TWD 100 of pre-tax profit distributed).

Filing and Payment

Fiscal year: Most companies use the calendar year (January–December). A different fiscal year may be adopted with tax office approval.
Annual filing deadline: 31 May (5 months after year-end for calendar year companies). Extensions may be granted on application.
Provisional tax: Companies must pay provisional tax (暫繳申報) by 30 September each year, equal to 50% of the previous year's tax liability. The final balance is due with the annual return.
Withholding: Companies withhold tax on certain payments — dividends, interest, royalties, and service fees paid to non-residents at rates between 15% and 20%.

Loss Carryforward

Net operating losses can be carried forward for up to 10 years. Both book and tax losses qualify, subject to compliance with thin capitalisation and related-party transaction rules.
Loss carryback is not permitted in Taiwan.
Ownership change restrictions apply — if a company undergoes a major ownership change, loss carryforward may be restricted unless the business continues the same line of activity.