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Taiwan Stock Dividend TaxTW-specific

Each year during tax filing, Taiwan stock dividends can be reported via combined filing (with 8.5% credit, capped at NT$80,000) or separate 28% flat tax. Pick wrong and you may overpay by tens of thousands. This tool gives the side-by-side comparison based on your marginal bracket.

Inputs

Only domestic Taiwan-stock dividends are included. US stocks and other overseas distributions fall under thealternative minimum tax (AMT) and are outside this calculation.

2024 brackets: 0–NT$560K 5%; –NT$1.26M 12%; –NT$2.52M 20%; –NT$4.72M 30%; above 40%.

The "tax due excluding dividends" line on your filing. If unsure, enter 0 to see only the dividend-portion gap.

Results
Lower-tax option
Combined-tax with 8.5% credit
Saves about NT$49K vs. the other option
Combined-taxSeparately-taxed
Dividends added to taxable incomeNT$24KNT$56K
8.5% dividend credit−NT$17K—
Final tax dueNT$57KNT$106K

Formula: Combined-tax = base income tax + dividends x marginal rate − min(dividends x 8.5%, NT$80K); Separately-taxed = base income tax + dividends x 28%. The lower of the two applies. For joint filings, each spouse may choose independently.

Quick decision

  • Marginal rate ≤ 30%: combined filing almost always wins
  • Marginal rate = 40%: separate 28% wins (40% − 8.5% = 31.5% > 28%)
  • Credit cap reached at dividend ≈ NT$940K per household per year

Note: this only applies to Taiwan-sourced stock dividends. US/foreign stock dividends fall under the AMT regime (see Overseas Income Tax).

Frequently asked

Combined filing or separate 28% — how do I decide?
It depends on your marginal income tax rate. Marginal ≤ 30% usually favors combined filing (30% − 8.5% credit = 21.5%, below 28%). Marginal = 40% favors separate flat 28% (40% − 8.5% = 31.5% > 28%). The tool computes both and tells you which is cheaper.
Is the 8.5% credit capped?
Yes — capped at NT$80,000 per household per year. NT$80K ÷ 8.5% ≈ NT$940K, meaning above NT$940K of annual dividends the excess gets no credit, eroding the combined-filing advantage for heavy dividend earners.
Do US stocks and overseas ETF dividends qualify?
No. The 8.5% credit only applies to dividends from Taiwan-domiciled companies. US, Hong Kong, or international ETFs (VTI, VOO, etc.) are 'overseas income' and fall under Taiwan's Alternative Minimum Tax regime (the NT$1M inclusion threshold). This tool covers only Taiwan stock dividends.
What about Taiwan ETFs like 0050 and 0056?
Distributions from Taiwan ETFs split into 'dividend income' (taxable, eligible for the 8.5% credit) and 'capital gains' (exempt). The taxable proportion is published annually by the ETF issuer. The tool assumes you input the taxable dividend amount.
How should married couples allocate dividends?
If one spouse has high salary (40% marginal) and the other has low or no income, consider holding the dividend-bearing portfolio under the lower-bracket spouse — combined filing then captures the 8.5% credit while staying out of the 40% bracket. The tool covers individual filing; for joint filing, run both spouses separately and compare.
Does the tool store my dividend amounts?
No. Calculations run locally in your browser. Nothing is uploaded.

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