Taiwan

Last update: 2026-04-22
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
Personal income
5 → 40%
progressive
Corporate
0 → 20%
progressive
Capital gains
5 → 40%
progressive
VAT (standard)
5%
standard rate
i 6.4 PRIVACY GRADE
i 3.1 VERY LOW TAX
i 2.1 HOLDING
i 2 DIVIDEND PIPELINE
i 2 CRYPTO HAVEN
i 1.4 EASY CITIZENSHIP
VERYLOW TAX 3.1/10 HOLDING 2.1/10 DIVIDENDPIPELINE 2/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 6.4/10 EASYCITIZENSHIP 1.4/10
01/08

Will Taiwan tax what you earn?

income tax tax residency territorial system

YES, A LOT. Taiwan taxes personal income heavily (top marginal rate 40%), and its definition of tax residence is wide: prolonged stay, economic centre of gravity, the net closes. The classic combo of high rate and broad catchment. Leaving is rarely as simple as buying a plane ticket.

Personal income taxi
5 → 40%
progressive · 5 brackets
Income simulatori
Income
Tax due
Effective rate
all-in
Marginal rate
Tax residence testi
31/183 days
183-day rule
Economic interest
Family centre
Habitual abode
Extended-stay test
Just one rule above is enough to make you tax-resident here.
02/08

Will Taiwan tax what you own?

capital gains wealth tax inheritance dividends interest

YES, A LOT. Taiwan runs the full kit on owned wealth: capital gains at 40%, and an annual wealth tax above a threshold (top rate 20%). Holding here is expensive in every direction: flow, stock, and transfer.

Capital gainsi
40%
progressive
Dividend taxi
40%
progressive
Interest incomei
40%
progressive
Wealth taxi
10 → 20%
progressive
Crypto · tax regimei
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-cryptoi
TAXABLE
each swap counts as a disposal — gains realised at every trade
FATF travel rulei
NOT SIGNED
no information-sharing obligation on VASP transfers
Inheritance systemi
APPLIES
system · 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.
03/08

Is it easy to run a company in Taiwan?

corporate tax criminal liability public registry VAT IP box

YES, BUT TAXED. Corporate tax in Taiwan is 20%, but the tax isn't where this country hurts. It treats misuse of corporate assets as a criminal offense (the textbook case is the French abus de biens sociaux doctrine: using your own company's money for personal purposes can trigger prosecution, even as sole shareholder, because the company is a distinct legal person and your consent doesn't waive the offense). And it runs public corporate registries: your name as shareholder is queryable by anyone with a browser. For an owner-operator, those two combined are the real friction. Heavier than the rate, and far less negotiable. Running a clean structure is straightforward; running it casually isn't.

Corporate taxi
0 → 20%
progressive · +5% undistributed current earnings of a corporation by the end of the following year
IP Box · Patent Boxi
NONE
no IP regime · IP income taxed under standard corporate rules
Misuse of corporate assetsi
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 privacyi
PUBLIC
Company Transparency Inquiry System (MOEA)
Directors privacyi
PUBLIC
Company Transparency Inquiry System (MOEA)
Incorporation costi
Limited Company
有限公司
Government Registration and Name Reservation Fees USD 41
Professional Incorporation and Foreign Investment Approval (FIA) Service USD 2,689
CPA Capital Verification Report USD 316
Document Translation and Notarization USD 475
Total USD 3,521
VAT standard ratei
5%
single rate · no reduced tiers
5%
Food & drink
5%
food
5%
non-alcoholic
5%
alcohol
Print media
5%
books
5%
ebooks
5%
newspapers
Culture
5%
cultural events
5%
cinema
5%
theatre
5%
museums
5%
sports
Transport
5%
public transit
5%
rail
5%
air
Hospitality
5%
hotels
5%
restaurants
5%
takeaway
Health
5%
pharma
5%
medical dev.
Energy
5%
electricity
5%
natural gas
5%
district heat.
5%
domestic fuel
Utilities
5%
water
5%
waste
Clothing
5%
kids clothing
Digital & telecom
5%
digital
5%
telecom
5%
broadcast
Construction
5%
construction
5%
social housing
Agriculture
5%
farm inputs
5%
animal feed
Personal services
5%
funeral
5%
hairdressing
04/08

Is Taiwan good for your holding company?

treaty network participation exemption withholding

NOT REALLY. Taiwan has a moderate 23-strong treaty network. Without a participation exemption, dividends from subsidiaries land in the corporate schedule (20%): workable for operational subsidiaries, much weaker as a pure holding vehicle.

Territorial systemi
Individuals
WORLDWIDE
Corporates
WORLDWIDE
Individuals: worldwide income taxation regardless of source. Corporates: worldwide.
Participation exemptioni
NONE
no dividend participation exemption regime
CFC rulesi
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.
WHT · dividendsi
21%
non-resident outbound
WHT · interest
20%
non-resident outbound
WHT · royalties
20%
non-resident outbound
Tax-haven WHT
no punitive rate on record
Treaties signedi
21
active
Treaties pending
1
in negotiation
Tax treaty networki
origin · TW 0% > 0% no treaty
Inspect a country
Hover any country on the map to read its withholding-tax treaty with TW.
Country Status Dividends Interest Royalties
// no treaties match
05/08

What does it cost to come and go from Taiwan?

exit tax territorial system dual citizenship

SOME. Taiwan taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.

Exit taxi
NONE
no triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
FORBIDDEN
naturalisation requires renouncing existing citizenship
Citizenship paths
Residence
Marriage
Birth
Descent
Investment
06/08

Will Taiwan protect your privacy?

info exchange corporate registries

YES. Taiwan has signed few exchange frameworks, so foreign tax authorities won't routinely see what you do here. But corporate registries are public: ownership and directorships are queryable by anyone with a browser. Privacy from abroad, transparency at home.

Multilateral reporting frameworks 0/10 active · 1 pending
CRS
CARF
FATCA
2014
MLI
BEPS
MAAC
GLOBAL FORUM
EOIR
CRYPTO-CARF
CRYPTO TRAVEL RULE
07/08

Is Taiwan itself a liability?

blacklists FATF standing

NO. Taiwan carries no entries on any major blacklist, though it sits outside FATF membership. Counterparties may apply light extra due diligence, but no formal stigma attaches to dealing with it.

Blacklist exposure Clear everywhere
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list
08/08

Will you feel free in Taiwan?

press freedom crypto CBDC EU

YES. Taiwan scores high on press freedom (rank #24) and treats crypto as a taxable but legitimate asset class. A CBDC is in development (1 project(s)), so payment rails are converging on state-issued, traceable money. Free speech yes; financial expression on the same ratchet as most of the developed world.

Press freedom · RSF indexi
24/180
score 77 · ↑ 3 ranks year-on-year
Central bank digital currencyi
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
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.
NOTABLY MORE FAVORABLE Same family of strategies, higher total score.
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.