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Taiwan - Other taxes and levies

Taiwan - Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social insurance taxes in Taiwan? If so, what are the rates for employers and employees?

Employer and employee

National health insurance rate is 4.69 percent currently and the insurable amount is up to a ceiling. The insurance premium will increase if there is additional family member. For the following table, we assume that the employee is single.

Labor insurance rate is 10 percent currently and the insurable amount is up to a ceiling. The employer and employee rates for national health insurance and labor insurance are listed as below:

Type of insurance

Paid by employer

Paid by employee

Paid by government

Total

National health insurance

2.814%

1.407%

0.469%

4.69%

Labor insurance

7%

2%

1%

10%

Total

9.814%

3.407%

1.469%

14.69%

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Taiwan?

Gifts of property located inside or outside of Taiwan that are made by a Taiwanese resident and gifts of property located inside Taiwan that are made by non-residents are subject to Taiwan gift tax if such gifts exceed the prescribed limit of TWD2,200,000 in a single taxable year.

Inheritance tax applies to inheritance from a Taiwanese resident for any property located inside or outside of Taiwan and inheritance from a Taiwanese non-resident for any property located in Taiwan.

Real estate tax

Are there real estate taxes in Taiwan?

Yes. The taxes assessed on the value of land and building is imputed annually. Besides, when the individual sells the real estate, they are required to pay taxes on the land incremental value.

Sales/VAT tax

Are there sales and/or value-added taxes in Taiwan?

Yes. Normally, there is a 5 percent value-added tax on the goods and services

Unemployment tax

Are there unemployment taxes in Taiwan?

There is no unemployment tax in Taiwan.

Other taxes

Are there additional taxes in Taiwan that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

No.

Land tax

If the assignee owns the land, they need to pay land tax annually (see above real estate tax).

Payroll tax

No.

Foreign Financial Assets

Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?

Not applicable.

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.

© 2020 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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