Effective February 8th, 2018, qualified foreign professionals are eligible for a special individual income tax benefit granted by the newly enactive “Act for the Recruitment and Employment of Foreign Professionals (Article 9).”
With annual salary income more than NT$3 million, qualified foreign professionals who meet the following criteria, and have physical presence during a calendar year for 183 days or more, half of their annual salary income exceeding NT$3 million could be tax-exempted for three years. AMT to include foreign earned income into taxation will not be applicable for foreigners who are qualified such a tax benefit.
1. The professional work performed by foreigners must be those listed by the authority;
2. The foreigners must have no household registration in Taiwan; and
3. Be approved for the first time to stay in Taiwan for the purpose of work; or
4. Hold valid Employment Gold Card.
If, after the first year applicable to the tax benefit, the foreign professionals do not stay in Taiwan during a calendar year for 183 days or more, the tax benefit will be suspended in the disqualified year and be applicable when physical presence test is met again. However, it should be specially noted that the total tax benefit period granted to the qualified foreigners is five-year calculated starting from the first applicable year.
Qualified foreigners should apply for the tax benefit through income tax return filing by attaching all required documents. Professionals with PRC nationality are not eligible for the tax benefit.
