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Taiwan - considerations for short-term assignments

Special considerations for short-term assignments

Taxation of international executives

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Residency rules

Payroll considerations

Taxable income

Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Residency rules

Are there special residency considerations for short-term assignments?

If the foreigner stays in Taiwan for 90 days or less in a calendar year and their income is paid and borne by the foreign employer, their employment income is not taxed in Taiwan.

Payroll considerations

Are there special payroll considerations for short-term assignments?

The foreigner should have a valid work permit before receiving the employment income from the Taiwanese company

Taxable income

What income will be taxed during short-term assignments?

Basically, all Taiwan-sourced income is taxed in Taiwan. However, if the foreigner stays in Taiwan for 90 days or less in a calendar year and their income is paid and borne by the foreign company, their employment income is not taxed in Taiwan.

Additional considerations

Are there any additional considerations that should be considered before initiating a short- term assignment in Taiwan?

No.

Disclaimer

All information contained in this publication is summarized by KPMG, a Taiwan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Taiwan Income Tax Act (as revised on 31 January 2020), Labor Pension Act, Labor Standards Act, Labor Insurance Act, National Health Insurance Act, Employment Service Act and Act for the Recruitment and Employment of Foreign Professionals.

© 2021 KPMG, the Taiwan member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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