Starting a business in
🇹🇼Taiwan
Checked November 4, 2026 · How we score
Corporate tax
20%
Top income tax
40%
Setup from
$2,500
all-in, first year
Time to form
4 weeks
visit usually needed
Taxes in Taiwan
| Corporate income tax | 20% 20% corporate income tax, with a relief for small profits (income up to TWD 120,000 is exempt and the tax on income between TWD 120,000 and 200,000 is capped at half of the excess). Undistributed earnings are subject to an additional 5% surtax. Companies with annual taxable income of TWD 500,000 or more may also be subject to the Alternative Minimum Tax. A 15% top-up tax applies to large multinationals from 2025. |
|---|---|
| Personal income tax (top) | 40% Progressive rates from 5% to 40% (40% above TWD 5.31m). Residents (183+ days a year) are taxed on Taiwan-source income, plus foreign income through the Alternative Minimum Tax rules for amounts above TWD 1m. Non-residents are generally subject to withholding or flat rates of about 18-20% on Taiwan-source income (varies by income type). Foreigners with Gold Card status get a 50% deduction of salary above TWD 3m for 5 years. |
| Tax system | Territorial (foreign income untaxed) |
| Capital gains tax | 0%Gains on securities are currently exempt for individuals, but gains on real estate are taxed under land value increment and the Integrated Housing and Land Tax (up to 45% within 2 years). |
| Dividend withholding (non-residents) | 21% |
| VAT / GST | 5% |
| Social security | Labor insurance and National Health Insurance are mandatory for employees; the employer pays about 20-25% of total labor cost, and the pension contribution is 6% of the employer. |
Forming a company in Taiwan
| Usual entity | Company limited by shares or limited company (Ltd) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $2,500–$6,000 |
| Annual running cost | $3,500–$8,000 |
| Time to incorporate | 4 weeks |
| Form remotely as a foreigner | No |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | Yes |
| Business banking for non-residents | Hard |
Residency and visas
No digital nomad visa; the Employment Gold Card is a 1-3 year work and residence permit for qualifying professionals (typically monthly salary of TWD 160,000 or more). Investors can obtain a resident visa with investment of at least TWD 6 million in an approved venture, and entrepreneurs can use the Entrepreneur Visa. Foreign investment needs approval from the Investment Commission.
| Digital nomad visa | No |
|---|---|
| Golden visa | Yes, from $190k |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Employment Gold Card
Combined work permit, residence, re-entry permit and ARC for qualifying foreign professionals for 1-3 years; with a 5-year 50% deduction of salary above TWD 3m.
Entrepreneur Visa / Startup Taiwan
Visa routes for founders with a funded or accredited start-up, with a minimum capital threshold that depends on the programme.
Free Economic Zones
Zones such as Taoyuan Aerotropolis and the free trade ports offer customs and VAT relief for processing and logistics firms.
Pros and cons
Why founders pick Taiwan
- Strong technology ecosystem and supply chains
- No minimum capital for a company
- Securities gains currently untaxed for individuals
- Excellent quality of life and credibility
Watch out for
- Relatively high personal tax rates and a 21% dividend withholding tax
- Foreign investment approval and Taiwan-based address needed
- Business bank accounts require in-person presence and local proof
- Language barrier and heavy paperwork
Best for: Semiconductor, hardware and electronics supply-chain companies · Founders targeting the Taiwanese and Chinese-language markets · Tech talent wanting a Gold Card
Taiwan: common questions
What is the corporate tax rate in Taiwan?
The headline corporate income tax rate is 20%, with a small-profit relief for the first TWD 120,000 of profit and a 5% surtax on undistributed earnings. Large multinationals are also subject to a 15% minimum tax.
Does Taiwan tax capital gains?
Gains on securities are currently not taxed for individuals, because the securities transactions income tax is suspended. Real estate gains are taxed, with a high rate for properties held less than two years.
Does Taiwan have a digital nomad visa?
Not as a dedicated visa. The Employment Gold Card is a work-and-residence permit for qualifying professionals, including freelancers who earn a high monthly income (typically TWD 160,000 or more), and a visitor visa does not allow work.
Can foreigners own 100% of a company in Taiwan?
Yes, in most sectors foreigners can hold 100% of a Taiwan company after approval from the Investment Commission of the Ministry of Economic Affairs. Some industries are on a negative list with limits.
What is the dividend withholding tax in Taiwan?
Dividends paid to non-resident shareholders are subject to 21% withholding tax, which can be reduced by tax treaties. Resident individuals include dividends in their income with a credit or a separate 28% rate option.
Sources
- Ministry of Finance (Taiwan)
- Ministry of Economic Affairs - Investment Commission
- Invest Taiwan
- PwC Tax Summaries - Taiwan
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.