Taiwan Tax Filing Guide
the Taiwan individual income tax filing for the tax year 2026. The guide covers: the filing period — May 1 to May 31 (the "所得稅結算申報期間" — the "annual tax return filing period"); the household filing system — the married couples must file the joint return (the "合併申報" — the "combined filing") aggregating the income of both spouses; the e-filing system — the online filing through the official tax portal (the "電子申報系統") with the pre-populated income data; the tax rates of 5% to 40%; the deductions — the standard deduction of TWD 124,000 or the itemised deductions.
Filing Period — May 1 to May 31
- Annual filing window: The individual income tax return (the "綜合所得稅結算申報" — the "consolidated income tax return") must be filed between May 1 and May 31 of the following year. The tax year is the calendar year (the "January 1 to December 31"). For the tax year 2026, the filing period is May 1 to May 31, 2027.
- Automatic extension — no penalty: Taiwan does NOT require the extension application for the late filing within 30 days. However, the late filing after May 31 results in the penalty of 2% of the tax due per month (up to the maximum of 20%). The interest at the postal savings rate (currently 1.5%) accrues on the unpaid tax from the original due date.
- Residents must file: The tax resident (the "居住者" — the individual present in Taiwan for 183 days or more) must file the annual return if the total income exceeds the sum of the personal exemption and the standard deduction (the "免稅額及標準扣除額合計數"). For 2026, the filing threshold is approximately TWD 216,000 for the single filer.
Household Filing System — Married Couples File Jointly
- Joint filing for married couples: The married couple (the "夫妻" — the "husband and wife") must file the joint tax return (the "合併申報" — the "combined filing"). The incomes of both spouses are aggregated and reported on the single return. The tax is calculated on the total household income.
- Separate filing — limited exception: The spouses may elect the "separate filing" (the "分開申報") in the limited circumstances: (a) the legal separation (the "已辦理別居登記"), (b) the marriage dissolution proceedings, (c) the physical separation due to the employment abroad. The separate filing is NOT available for the cohabiting married couples.
- Dependents: The taxpayer may claim the dependents (the "扶養親屬" — the "dependent relatives") including: (a) the children under the age of 20, (b) the children aged 20 to 24 in the full-time education, (c) the elderly parents (aged 60 or over) with the income below the personal exemption amount, (d) the disabled dependents regardless of the age.
E-Filing System (電子申報)
- Online tax portal: The tax return may be filed electronically through the official "Tax E-Filing System" (the "電子申報系統") available at the National Taxation Bureau website. The e-filing system pre-populates the taxpayer's income data from the employers, the banks, and the other withholding agents (the "所得資料" — the "income data").
- Digital certificate and mobile ID: The e-filing requires the "digital certificate" (the "自然人憑證" — the "natural person certificate") or the "mobile phone ID" (the "手機身分認證" — the "mobile identity verification"). The taxpayer may also use the "tax filing QR code" (the "報稅QR碼") for the quick authentication.
- Tax calculation and payment: The e-filing system automatically calculates the tax due. The payment methods include: (a) the bank transfer (the "繳稅"), (b) the credit card (the "信用卡"), (c) the ATM (the "自動櫃員機"), (d) the convenience store (the "便利商店" up to TWD 30,000).
Tax Rates and Deductions
- Progressive rates — 5% to 40%: The tax rates for 2026: (a) 5% on the first TWD 560,000 of the taxable income, (b) 12% on TWD 560,001 to TWD 1,260,000, (c) 20% on TWD 1,260,001 to TWD 2,520,000, (d) 30% on TWD 2,520,001 to TWD 4,720,000, (e) 40% on the income above TWD 4,720,000.
- Standard deduction — TWD 124,000: The taxpayer may choose the "standard deduction" (the "標準扣除額") of TWD 124,000 for the single filer (TWD 248,000 for the married couple filing jointly) OR the "itemised deductions" (the "列舉扣除額") if the total itemised deductions exceed the standard deduction amount.
- Itemised deductions: The itemised deductions include: (a) the medical expenses (the "醫藥費") — the unlimited deduction for the qualified medical expenses, (b) the insurance premiums (the "保險費") — up to TWD 24,000 per person for the life, the health, and the NHI insurance, (c) the donations (the "捐贈") — up to 20% of the gross income, (d) the housing loan interest (the "購屋借款利息") — up to TWD 300,000 for the owner-occupied home, (e) the rental expenses (the "房屋租金支出") — up to TWD 120,000 for the rental housing.