CIT rate 20%; undistributed earnings subject to 5% surtax. IBT at 12% on certain tax-exempt income. VAT 5%. Non-residents: 21% dividend WHT, 15% interest WHT, 20% royalty WHT.
Chinese Taipei Tax Brief
Time of Update 4/05/2026
Chinese Taipei Corporate Income Tax (CIT)
Chinese Taipei Withholding Tax (WHT)
Chinese Taipei Value-Added Tax (VAT)
Chinese Taipei Capital Gain Tax (CGT)
Chinese Taipei Effective Tax Rate (ETR)
Composite Effective Marginal Tax Rate:
N/A
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TKEG Expat™ (Test) Chinese Taipei Corporate Tax Guide
1.
Taiwan Corporate Income Tax
The corporate income tax (CIT) rate in Taiwan is 20%.
[b]Resident tax rates:[/b]
[ul][li]Up to TWD 120,000 — Exempt[/li][li]TWD 120,001 and over — 20% of total taxable income[/li][/ul]
[b]Undistributed Earnings Surtax:[/b] An additional 5% tax is imposed on current-year earnings that remain undistributed by the end of the following year.
Non-resident companies with a fixed place of business (FPOB) or business agent in Taiwan are taxed at the same 20% rate.
[b]Resident tax rates:[/b]
[ul][li]Up to TWD 120,000 — Exempt[/li][li]TWD 120,001 and over — 20% of total taxable income[/li][/ul]
[b]Undistributed Earnings Surtax:[/b] An additional 5% tax is imposed on current-year earnings that remain undistributed by the end of the following year.
Non-resident companies with a fixed place of business (FPOB) or business agent in Taiwan are taxed at the same 20% rate.
2.
Income Basic Tax
All Taiwan resident companies, and non-resident companies with an FPOB or business agent in Taiwan, must calculate IBT if they earn certain tax-exempt income. For taxable year 2025, basic income is calculated per government-stipulated formulae with a deduction of TWD 600,000. The IBT rate is 12%. If IBT exceeds regular CIT, the taxpayer pays regular CIT plus the difference. If regular CIT exceeds IBT, no additional payment is required.
[b]Pillar Two (Global Minimum Tax):[/b] Draft proposals are under review to raise the IBT rate to 15% for Taiwanese MNE entities meeting OECD Pillar Two thresholds, potentially effective from 2025 onwards.
[b]Pillar Two (Global Minimum Tax):[/b] Draft proposals are under review to raise the IBT rate to 15% for Taiwanese MNE entities meeting OECD Pillar Two thresholds, potentially effective from 2025 onwards.
3.
Value-added Tax
VAT is applicable to general industries, and the VAT rate is 5%. Under the VAT system, each seller collects output VAT from the buyer at the time of sale, deducts input VAT paid on purchases from output VAT, and remits the balance to the tax authority.
4.
Gross business receipts tax (GBRT)
GBRT is applicable to specified industries (e.g. financial institutions, small businesses). For investment trust companies, securities and futures firms, short-term commercial paper enterprises, and pawnshops, the rate is 2%. The GBRT rate on revenues derived from the core business operations of banks and insurance enterprises is 5%. For re-insurance enterprises, the rate is 1%.
5.
Property tax
Land and buildings are annually assessed for tax based on their officially assessed values as determined by government authorities.
[ul][li][b]Land Value Tax (LVT):[/b] 1% to 5.5% of assessed land value[/li][li][b]Building Tax (non-residential):[/b] 1.5% to 5% of assessed value[/li][li][b]Building Tax (residential):[/b] 1% to 4.8% of assessed value[/li][li][b]Land Value Increment Tax (LVIT):[/b] Progressive rates of 20% to 40% on land value gains upon sale[/li][li][b]Real Property Transfer Tax (Joint Property Tax 2.0):[/b] 15% to 45% on gains from properties acquired after January 1, 2016, based on holding period[/li][/ul]
[ul][li][b]Land Value Tax (LVT):[/b] 1% to 5.5% of assessed land value[/li][li][b]Building Tax (non-residential):[/b] 1.5% to 5% of assessed value[/li][li][b]Building Tax (residential):[/b] 1% to 4.8% of assessed value[/li][li][b]Land Value Increment Tax (LVIT):[/b] Progressive rates of 20% to 40% on land value gains upon sale[/li][li][b]Real Property Transfer Tax (Joint Property Tax 2.0):[/b] 15% to 45% on gains from properties acquired after January 1, 2016, based on holding period[/li][/ul]
