The May tax season in Taiwan
Taiwan's income tax filing period is May 1–31 each year. For most salary earners with some stock dividends, the process isn't complicated, but getting deductions or dependent claims wrong can mean overpaying or being audited later. This guide walks through the full SOP.
Filing methods
Three main options:
- Online filing (NHI card + card reader / mobile app / SMS authentication) — most recommended. Pre-populates your income data from employers, brokers, and banks.
- In-person at the National Taxation Bureau — they open extra windows during May.
- Paper mail — still accepted, not recommended.
After filing online:
- Pay tax: credit card, ATM, convenience store, mobile payment
- Receive refund: deposited to your specified bank account
Step 1: Confirm filing status
- Single: file individually
- Married: must file jointly (same form), but can choose one of three calculation methods to minimize tax (see winpie's Income Tax Calculator)
Step 2: Pull your income data
The online filing system lets you one-click download all reported income:
- Salary (from employers)
- Professional income (freelance, design fees)
- Interest income (banks)
- Dividends (brokers)
- Severance / retirement lump sums
- Rental income
- Capital gains on real estate
- Other
This "data pull" feature saves huge amounts of time. Use it.
Step 3: List dependents
Each dependent adds NT$97,000 to your tax-free allowance.
Parents / grandparents
- Age 60+ AND lacking means of support
- OR under 60 but clearly unable to earn (disabled, chronic illness)
Children
- Under 18, OR over 18 but still in school / in compulsory military service / disabled
Siblings
- Under 20, OR over 20 but in school / disabled
Other relatives
- Must live with you AND be under 18 or over 60 without means of support
The tax savings
Each dependent at 12% marginal rate saves ≈ NT$11,640. At 40% marginal rate ≈ NT$38,800.
Step 4: Choose standard or itemized deduction
Pick one:
| Method | Amount (2024) | When to use |
|---|---|---|
| Standard | 131K single / 262K married | Few deductible items |
| Itemized | Sum of eligible items | Items exceed standard |
Itemizable items include:
- Charitable donations (up to 20% of income)
- Insurance premiums (up to NT$24,000 per person)
- Medical expenses (no cap, net of insurance reimbursements)
- Home mortgage interest (up to NT$300,000 per household, self-occupied)
- Rent (now a special deduction since 2024, previously itemized)
Generally: if you have self-occupied home mortgage, itemized almost always wins.
Step 5: Special deductions (automatic)
Not a choice, applied automatically:
- Salary earner special deduction: NT$218,000 per salary earner
- Interest/savings: NT$270,000
- Disability: NT$218,000 per person
- Education (college or above): NT$25,000 per child
- Preschool (under 5): NT$150,000 for 1st child (2024+), NT$225,000 for 2nd+
- Long-term care: NT$120,000 per disabled dependent
Step 6: Calculate tax owed
Taxable income = Total income − Exemptions − Deductions
Apply 2024 brackets:
- 0 – 560K × 5%
- 560K – 1.33M × 12% − 41,300
- 1.33M – 2.66M × 20% − 147,700
- 2.66M – 4.98M × 30% − 413,700
- Over 4.98M × 40% − 911,700
Step 7: Dividend tax choice
If you have Taiwan stock dividends:
- Combined: dividends included in income, 8.5% credit (capped at NT$80,000)
- Separate: dividends × 28%
Rule of thumb: marginal rate ≤ 30% → combined wins. See Dividend Tax Calculator.
Step 8: Pay or wait for refund
- Owe tax: pay via card / ATM / convenience store / mobile
- Refund due: usually credited June–July
Common mistakes
- Forgetting overseas income: Taiwan uses CRS to get foreign account data. Not reporting means back taxes + penalties.
- Claiming ineligible dependents: parents who have over NT$97K income can't be claimed → audit risk.
- Wrong deduction method: itemizing when total is less than standard loses money.
- Wrong dividend choice: high-income filers selecting combined pay tens of thousands more than needed.
For foreign nationals
- Residents (183+ days in Taiwan per year): taxed like locals
- Non-residents: flat withholding rates apply (18% on salary, 21% on dividends) — no filing unless special cases
If you became a resident mid-year, the year is split — consult National Taxation Bureau or an accountant.
Tools
Official sources
- eTax Portal (財政部稅務入口網) — online filing, dependent pre-check, tax calculation
- National Taxation Bureau of Taipei — interpretative rulings, in-person help (regional bureaus available too)
- Ministry of Finance — annual adjustments to brackets and deductions
- Taxation Administration — tax law texts
Disclaimer
This is general procedural guidance, not tax advice. Complex situations (rental, professional income, non-resident status) should be confirmed with the National Taxation Bureau or a licensed CPA.