# Taiwan

 Country code: TW

**Pros**
- Competitive corporate tax rates and streamlined digital tax filing systems for entrepreneurs
- Exceptional public safety and minimal crime rates for a secure residential environment
- Robust digital infrastructure and high-speed connectivity for seamless global business operations

**Cons**
- Persistent geopolitical risks and regional tensions affecting long-term strategic planning and stability
- Opaque bureaucratic requirements and slow processing times for specific international business permits
- State-dominated energy market and risks of power shortages during peak demand periods

Long story short: Opening a business bank account in Taiwan is an obstacle course: even with an entrepreneur visa in hand, local banks make you wait weeks and treat you like a suspect by default.

Once you've swallowed the paperwork, taxes stay reasonable and predictable, the tax office isn't out to trap you, and corruption is close to nonexistent, a rarity in Asia.

Other things worth knowing: infrastructure and internet are top notch, safety is near total in areas like Da'an or Xinyi, street food is excellent, and stunning landscapes are two hours from Taipei.

## Will your income be taxed?

Long story short: YES, A LOT.
They'll shear you for up to **40%** at the top marginal rate in **Taiwan**, and the taxman has *long arms*: linger a bit too long, park your economic interests here, and the net closes.

Steep rate, wide catchment: the classic combo of states that don't let go of their cash cows. Don't expect a plane ticket to fix it.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 5 → 40% | progressive · 5 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 18,531 | 5% |
| 18,531 – 41,773 | 12% |
| 41,773 – 83,545 | 20% |
| 83,545 – 156,412 | 30% |
| 156,412 + | 40% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | exists here |  |
| Economic interest | exists here |  |
| Family centre | exists here |  |
| Habitual abode | exists here |  |
| Extended-stay test | exists here |  |

## Will your wealth be taxed?

Long story short: YES, A LOT.
**Taiwan** runs the full shearing kit on wealth: capital gains at **40%**, *plus* an annual wealth tax above a threshold (top rate **20%**).

Flow, stock, transfer: every angle gets clipped. Holding assets here is how you feed the machine.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 40% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 18,531 | 5% |
| 18,531 – 41,773 | 12% |
| 41,773 – 83,545 | 20% |
| 83,545 – 156,412 | 30% |
| 156,412 + | 40% |

| Metric | Value | Detail |
| --- | --- | --- |
| Dividend tax | 40% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 18,531 | 5% |
| 18,531 – 41,773 | 12% |
| 41,773 – 83,545 | 20% |
| 83,545 – 156,412 | 30% |
| 156,412 + | 40% |

| Metric | Value | Detail |
| --- | --- | --- |
| Interest income | 40% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 18,531 | 5% |
| 18,531 – 41,773 | 12% |
| 41,773 – 83,545 | 20% |
| 83,545 – 156,412 | 30% |
| 156,412 + | 40% |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | 10 → 20% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 1,765,444 | 10% |
| 1,765,444 – 3,530,887 | 15% |
| 3,530,887 + | 20% |

| Metric | Value | Detail |
| --- | --- | --- |
| Inheritance system | APPLIES | estate-based · single threshold · Headline rate — · Allowance TWD 13,890,000 · spouses are typically exempt; flat rate applies above the allowance, regardless of heir class. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | UNREGULATED | Fallback rate: 40% · Taiwan classifies crypto as 'Virtual Commodities'. Gains are taxed as 'Property Transaction Income' under general tax law. Domestic gains are subject to progressive rates (5-40%). Foreign-sourced gains (e.g., on international exchanges) are 'Overseas Income' under the Alternative Minimum Tax (AMT) system, taxed at 20% if total basic income exceeds NT$7.5 million and foreign income exceeds NT$1 million. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: NO.
Corporate tax in **Taiwan** is **20%**, but the rate isn't what hurts. *Misuse of corporate assets is a criminal offense*; the textbook case is the French *abus de biens sociaux*: spend your own company's money on yourself and you can end up prosecuted, even as sole shareholder, because the company is a separate legal person and your consent means nothing.

And the *registries are public*: your name as shareholder, free to browse.

For an owner-operator, those two together weigh far more than the rate, and unlike the rate they don't negotiate. Run it clean and you're fine; run it casually and you'll get burned.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 0 → 20% | progressive · +5% undistributed current earnings of a corporation by the end of the following year |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 3,769 | exempt |
| 3,769 + | 20% |

| Metric | Value | Detail |
| --- | --- | --- |
| VAT standard rate | 5% | single rate · no reduced tiers |

| VAT family | Category | Rate |
| --- | --- | --- |
| Food & drink | food | 5% |
| Food & drink | non-alcoholic | 5% |
| Food & drink | alcohol | 5% |
| Print media | books | 5% |
| Print media | ebooks | 5% |
| Print media | newspapers | 5% |
| Culture | cultural events | 5% |
| Culture | cinema | 5% |
| Culture | theatre | 5% |
| Culture | museums | 5% |
| Culture | sports | 5% |
| Transport | public transit | 5% |
| Transport | rail | 5% |
| Transport | air | 5% |
| Hospitality | hotels | 5% |
| Hospitality | restaurants | 5% |
| Hospitality | takeaway | 5% |
| Health | pharma | 5% |
| Health | medical dev. | 5% |
| Energy | electricity | 5% |
| Energy | natural gas | 5% |
| Energy | district heat. | 5% |
| Energy | domestic fuel | 5% |
| Utilities | water | 5% |
| Utilities | waste | 5% |
| Clothing | kids clothing | 5% |
| Digital & telecom | digital | 5% |
| Digital & telecom | telecom | 5% |
| Digital & telecom | broadcast | 5% |
| Construction | construction | 5% |
| Construction | social housing | 5% |
| Agriculture | farm inputs | 5% |
| Agriculture | animal feed | 5% |
| Personal services | funeral | 5% |
| Personal services | hairdressing | 5% |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | CRIMINAL | criminal liability · Criminal Code of the Republic of China, Article 336, Paragraph 2 (Business Embezzlement) and Article 342 (Breach of Trust) · Taiwan strictly adheres to the 'Autonomy of the Legal Entity' principle. Under the Company Act, a company is a distinct juristic person. Therefore, even in a one-person company, the assets belong to the company and not the individual. A sole shareholder-director who uses corporate funds for personal expenses without proper legal procedure (such as a formal dividend distribution) commits 'Business Embezzlement' or 'Breach of Trust.' These are criminal offenses punishable by imprisonment, regardless of the company's solvency, because the act is viewed as harming the property interests of a separate legal entity. |
| Shareholders privacy | PUBLIC | Company Transparency Inquiry System (MOEA) |
| Directors privacy | PUBLIC | Company Transparency Inquiry System (MOEA) |

**03.3 Incorporation cost**

_In this country, the most standard company form is called 有限公司 (Limited Company). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Government Registration and Name Reservation Fees | USD 41 |  |
| Professional Incorporation and Foreign Investment Approval (FIA) Service | USD 2,670 |  |
| CPA Capital Verification Report | USD 314 |  |
| Document Translation and Notarization | USD 471 |  |
| Total | USD 3,496 |  |

## A good fit for a holding?

Long story short: NOT REALLY.
**Taiwan** has a *moderate* **23**-treaty network, but no participation exemption: dividends from subsidiaries land straight in the corporate schedule (**20%**).

Fine for operational subsidiaries; as a pure holding base, you're feeding the local taxman at every distribution.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | NONE | no dividend participation exemption regime |
| CFC rules | APPLY | Starting January 1, 2023, Taiwan taxes parent companies on the undistributed earnings of controlled foreign entities in low-tax regions lacking business substance. Certain investment income is treated as distributed and taxed early, regardless of actual payouts. |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 21% | non-resident outbound |
| WHT · interest | 20% | non-resident outbound |
| WHT · royalties | 20% | non-resident outbound |
| Tax-haven WHT | NONE | no punitive rate on record |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 21 | active |
| Treaties pending | 1 | in negotiation |

## Easy to come and go?

Long story short: SOME.
**Taiwan** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | FORBIDDEN | naturalisation requires renouncing existing citizenship |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 5 years | available path to naturalisation |
| Marriage | 3 years | available path to naturalisation |
| Birth | — | not available |
| Descent | 1 gen | available path to naturalisation |
| Investment | — | not available |

## Is your money watched?

Long story short: NO.
Foreign tax offices see next to nothing of what you do in **Taiwan**: it has signed *few exchange frameworks*.

But the *corporate registries are public*: your shareholdings and directorships are one search away for anyone curious. Invisible from abroad, on display at home.

**Multilateral reporting frameworks — 0/9 active · 1 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | None | — |
| CARF | None | — |
| FATCA | Signed | 2014 |
| MLI | None | — |
| BEPS | None | — |
| MAAC | None | — |
| GLOBAL FORUM | None | — |
| EOIR | None | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: NO.
**Taiwan** sits on no major blacklist, though it's *outside* the FATF club.

Some counterparties will run a bit of extra due diligence out of habit, but there's no formal stigma: you won't get hassled for dealing with it.

**Blacklist exposure — Clear everywhere**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: YES.
**Taiwan** scores high on press freedom (rank **\#24**) and treats crypto as a *taxable but legitimate* asset class. A CBDC is in the pipeline (**1** project(s)), so the payment rails are drifting toward state-issued, traceable money.

Speech: free. Money: the same slow squeeze as most of the developed world.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 24/180 | score 77 · ↑ 3 ranks year-on-year |

Central bank digital currency

    Program Status Cross-border Sources     Taiwan CBDC

Taiwan: In a press release in June 2020 following the Board of Governors meeting, the Central Bank of Taiwan noted that the focus for CBDC has shifted from wholesale to retail applications recently in many countries and that it plans to approach CBDC research in phases: starting with retail CBDC in the first half of 2020 and moving to wholesale CBDC in the third quarter of 2020. The Central Bank of Taiwan has established a working group, in partnership with academic institutions, to explore the technical viability of a DLT-based retail CBDC. It also plans to work with private partners to research a two-tiered wholesale CBDC.

The Central Bank of Taiwan

   RESEARCH   —   [announce →](https://www.cbc.gov.tw/tw/cp-302-164924-0423d-1.html "Announcement")

 programs 1

## Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in **Taiwan**. *Stripe* won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. *Amazon* doesn't deliver either.

Some secondary services run (**5/11**), but for an online business this is swimming against the current.

**Accept payments — 3/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Available | wallet payments |
| Adyen | Available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 1/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to Taiwan. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

 [   Bangladesh BD  → ](https://stateless.sx/en/country/bd) [   Guadeloupe GP  → ](https://stateless.sx/en/country/gp) [   Pakistan PK  → ](https://stateless.sx/en/country/pk)

  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

 [   Madagascar MG  → ](https://stateless.sx/en/country/mg) [   Bosnia & Herzegovina BA  → ](https://stateless.sx/en/country/ba) [   Montenegro ME  → ](https://stateless.sx/en/country/me)

  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

 [   St. Pierre & Miquelon PM  → ](https://stateless.sx/en/country/pm) [   St. Martin MF  → ](https://stateless.sx/en/country/mf) [   Liberia LR  → ](https://stateless.sx/en/country/lr)