Taiwan Cross-Border Tax Guide

Taiwan cross-border taxation for 2026. The guide covers: the 183-day rule for tax residency — the individual present in Taiwan for 183 days or more in the calendar year is the "tax resident" (the "居住者"), the individual present for 31 to 182 days is the "non-resident"; the non-resident withholding at 18% on the employment income; the dividend withholding at 15% to 21%; the DTA network — the limited double tax agreements with 34 countries including the UK, the Australia, the Japan, and the Singapore.

183-Day Rule for Tax Residency

183 days or more — tax resident (居住者): The individual who stays in Taiwan for 183 days or more in the calendar year (the "January 1 to December 31") is treated as the "tax resident". The resident is taxed on the "Taiwan-sourced income" (the "中華民國來源所得") — the employment income, the business income, the investment income, and the rental income sourced in Taiwan. The worldwide income is NOT taxed — Taiwan uses the "territorial tax system" (the "屬地主義").
31 to 182 days — non-resident (非居住者): The individual who stays in Taiwan for 31 to 182 days in the calendar year is treated as the "non-resident". The non-resident is subject to the "withholding tax" at the flat rate of 18% on the employment income (the "扣繳率 — 18%"). The non-resident is NOT entitled to the "tax-free allowance" (the "免稅額") or the "standard deduction" (the "標準扣除額").
Less than 31 days — short-stay exemption: The individual who stays in Taiwan for less than 31 days is generally exempt from the Taiwan income tax on the employment income if the individual is the "foreigner without the domestic source of income" (the "非中華民國境內居住之個人"). The wages earned in Taiwan for less than 31 days may be exempt if the employer is a foreign entity.

Non-Resident Withholding Rates

Employment income — 18%: The employer must withhold 18% of the gross salary paid to the non-resident employee (the "居住未滿183天" — the "residing less than 183 days"). The withholding is the final tax — the non-resident does NOT need to file the annual tax return unless there is the additional Taiwan-sourced income.
Dividends — 15% to 21%: The dividends paid to the non-resident shareholders are subject to the withholding tax at: (a) 21% for the individual non-resident shareholders (the "股利扣繳率 — 21%"), (b) 15% for the corporate non-resident shareholders, (c) the reduced rates under the DTA (typically 10% to 15%).
Interest and royalties — 15% to 20%: The interest paid to the non-residents is subject to the withholding at 15% (the "利息扣繳率 — 15%"). The royalties paid to the non-residents are subject to the withholding at 20% (the "權利金扣繳率 — 20%"), reduced to 10% under the most DTAs.

Double Tax Agreement (DTA) Network

34 treaty partners: Taiwan has the comprehensive double tax agreements with 34 countries, including: the United Kingdom, the Australia, the New Zealand, the Japan, the South Korea, the Singapore, the Malaysia, the Indonesia, the Vietnam, the Thailand, the Philippines, the India, the Switzerland, the Austria, the Belgium, the Czech Republic, the Denmark, the France, the Germany, the Hungary, the Italy, the Luxembourg, the Netherlands, the Poland, the Portugal, the Slovakia, the Spain, the Sweden, the Canada, and the South Africa.
No agreement with the US or China: Taiwan does NOT have the comprehensive DTA with the United States or the People's Republic of China. The US-Taiwan treaty negotiations are ongoing but not yet concluded. The cross-border income between Taiwan and China is governed by the "Cross-Strait Tax Agreement" (the "兩岸租稅協議") — the limited agreement on the exchange of information.
Treaty benefits — reduced withholding: Under the DTAs, the withholding rates are typically reduced: (a) the dividends — 10% to 15% (from the standard 21%), (b) the interest — 0% to 10% (from the standard 15%), (c) the royalties — 10% (from the standard 20%). The treaty benefits require the "Certificate of Residence" (the "居住者證明") filed with the Taiwan tax authorities.