Taiwan

{"ftc_utility":"medium","fbar_trigger_notes":"US expats working in Taiwan must open local NTD bank accounts for payroll; balances frequently exceed USD 10,000 triggering FBAR filing requirements. Taiwan bank accounts held individually or jointly must be reported on FinCEN Form 114 if aggregate balances exceed USD 10,000 at any point during the calendar year.","ftc_utility_reason":"Taiwan taxes residents on Taiwan-source income at progressive rates up to 40%. Taiwan-source income taxes paid can generate foreign tax credits for US purposes when FEIE is not elected or for income above the exclusion limit. Foreign-source income is generally not taxed in Taiwan (except via AMT), so FTC does not shelter foreign passive income from US tax.","presence_day_count_notes":"Taiwan does not have a formal visa-on-arrival limit for US passport holders for stays up to 90 days. Work visas or Alien Resident Certificates (ARC) are required for long-term stays. The 330-day physical presence test is achievable for those legally residing in Taiwan on an ARC or employment-based visa. Day counting follows standard IRS rules regardless of local visa status.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":15000,"local_tax_rate_on_earned_income":0.05,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income is treated as foreign-source income. It is included in basic income for AMT purposes if total foreign-source income exceeds NTD 1 million. AMT applies at 20% on basic income above NTD 6.7 million. Taiwan domestic pension income from the labor pension system is subject to a 6% contribution during employment; retirement payouts from the defined contribution system are generally exempt or taxed under specific rules.","tax_rate":null,"locally_taxed":true},"social_security":{"notes":"No US-Taiwan income tax treaty exists. US Social Security benefits received by Taiwan tax residents are foreign-source income. The same AMT rules apply - if total basic income exceeds NTD 6.7 million, AMT at 20% may apply to amounts above the exemption. In practice, Social Security alone rarely triggers Taiwan AMT.","locally_taxed":false,"treaty_protection":false},"roth_distributions":{"notes":"Roth IRA qualified distributions are generally not taxable in the US and would typically be treated as foreign-source income in Taiwan. Under the foreign-source income AMT rules, if total basic income (including Roth distributions) exceeds NTD 6.7 million, the excess over the exemption is taxed at 20% AMT. For most individuals, Roth distributions fall below the AMT threshold and are effectively not locally taxed.","locally_taxed":false},"us_401k_ira_distributions":{"notes":"Taiwan and the US do not have a formal bilateral income tax treaty. US 401(k) and IRA distributions received by Taiwan tax residents are generally treated as foreign-source income. Taiwan residents are taxed on Taiwan-source income; foreign-source income exceeding NTD 1 million is subject to the alternative minimum tax (AMT) at 20% if total basic income exceeds NTD 6.7 million. For most retirees with modest distributions, the AMT threshold may not be triggered, but there is no treaty exemption. Distributions are taxed under ordinary progressive rates if the income is deemed Taiwan-source.","tax_rate":null,"locally_taxed":true,"treaty_protection":false}}

{"rate":0,"notes":"Taiwan does not levy a general capital gains tax on securities transactions; gains from stock sales are exempt for most individuals. Real property gains are taxed under a separate house and land transactions tax regime.","details":{"tax_type":"Capital Gains Tax","country_name":"Taiwan","country_iso_code":"TWN","source_references":["PwC Taiwan Tax Summaries","Taiwan Ministry of Finance"],"last_verified_date":"2026-06-03","general_description":"Taiwan abolished its income-based capital gains tax on securities in 2016. Gains from selling listed shares are generally exempt from income tax for individual investors. Real property transactions are subject to the House and Land Transactions Income Tax, introduced in 2016 and expanded in 2021, which taxes gains on property held short-term at higher rates.","corporate_capital_gains":{"rate":0.2,"tax_treatment":"Corporate capital gains are generally included in taxable income and taxed at the standard corporate income tax rate of 20%. Gains from sale of securities by corporations are taxable."},"individual_capital_gains":{"rate":0,"tax_treatment":"Gains on sale of listed securities by individuals are exempt from income tax. Real property gains are taxed under the House and Land Transactions Income Tax at rates ranging from 15% to 45% depending on holding period. Property held less than 2 years is taxed at 45%, 2-5 years at 35%, and beyond 10 years at 15%.","securities_rate":0,"real_property_rates":[{"rate":0.45,"holding_period":"less than 2 years"},{"rate":0.35,"holding_period":"2 to 5 years"},{"rate":0.2,"holding_period":"5 to 10 years"},{"rate":0.15,"holding_period":"more than 10 years"},{"rate":0.1,"holding_period":"self-use residence more than 6 years"}]}}}

{"notes":"Taiwan residents can choose between including dividends in consolidated income (progressive rates up to 40%, with an 8.5% tax credit capped at NTD 80,000 per household) or applying a separate 28% flat tax. Non-residents are subject to a 21% withholding tax on dividends. A 2% surtax on retained earnings (undistributed profits tax) applies at the corporate level.","rates":[{"rate":0.28,"type":"flat","notes":"Resident individuals may elect a 28% separate flat tax on dividend income as an alternative to consolidated income tax"},{"rate":0.4,"type":"progressive","notes":"Resident individuals may alternatively include dividends in consolidated income at progressive rates up to 40%, with an 8.5% imputation credit capped at NTD 80,000 per household"},{"rate":0.21,"type":"withholding","notes":"Non-resident individuals and foreign companies subject to 21% withholding tax on Taiwan-source dividends"}]}