Taiwan Tax Residency Guide
the Taiwan tax residency rules for the individuals for 2026. The guide covers: the 183-day rule — the individual present for 183 days or more in the calendar year is the "tax resident" (居住者) and is taxed on the Taiwan-sourced income at the progressive rates of 5% to 40%; the 31 to 182 day rule — the individual present for 31 to 182 days is the "non-resident" (非居住者) and is taxed at the flat withholding rate of 18% on the employment income; the household registration (戶籍) — the "household registration" is the official record of the residence address in Taiwan and is relevant for the tax filing status and the "permanent establishment" determination.
183-Day Rule — Tax Resident (居住者)
- 183 days or more in the calendar year: The individual who "resides in the Taiwan territory" for 183 days or more in the calendar year (the "January 1 to December 31") is the "tax resident" (the "居住者" — the "resident individual"). The days are counted as the "full calendar days" — the day of arrival and the day of departure each count as one day.
- Taxation on the Taiwan-sourced income: The resident individual is taxed on the "Taiwan-sourced income" (the "中華民國來源所得") at the "progressive tax rates" of: (a) 5% on the first TWD 560,000, (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.
- Tax-free allowance and deductions: The resident is entitled to: (a) the personal tax-free allowance of TWD 92,000 (the "免稅額" — the "tax exemption amount"), (b) the standard deduction of TWD 124,000 (the "標準扣除額" — the "standard deduction") for the single filer, (c) the special deductions (the "特別扣除額") for the salary earners, the disabled, the education expenses, and the dependents.
31 to 182 Days — Non-Resident (非居住者)
- 31 to 182 days in the calendar year: The individual who resides in Taiwan for 31 to 182 days in the calendar year is the "non-resident" (the "非居住者" — the "non-resident individual"). The non-resident is subject to the "withholding tax" on the Taiwan-sourced income at the flat rate of 18% on the employment income.
- No annual return filing: The non-resident does NOT file the annual individual income tax return (the "所得稅申報") unless the non-resident has the "other Taiwan-sourced income" (the "非屬扣繳之所得" — the "income not subject to the withholding"). The 18% withholding is the final tax liability.
- No allowances or deductions: The non-resident is NOT entitled to the personal exemption, the standard deduction, or the special deductions. The gross income is subject to the withholding without the deduction for the living expenses.
- Less than 31 days: The individual present for less than 31 days is generally exempt from the Taiwan income tax on the employment income if the income is paid by the foreign employer.
Household Registration (戶籍)
- What is the household registration: The "household registration" (the "戶籍" — the "household registration record") is the official government record of the individual's residence address in Taiwan. The household registration is maintained by the "Household Registration Office" (the "戶政事務所") and is separate from the "tax registration".
- Relevance for the tax residency: The household registration is NOT the sole determinant of the tax residency. However, the individual with the household registration in Taiwan is presumed to have the "intent to reside" in Taiwan and may be treated as the "resident" even if the physical presence is less than 183 days.
- Deregistration: The individual who leaves Taiwan permanently should: (a) cancel the household registration (the "遷出戶籍" — the "move out registration"), (b) notify the tax authorities of the change of the address, (c) appoint the tax representative (the "稅務代理人") if the individual has the ongoing tax obligations in Taiwan.