“I’ve been working in Taiwan for over a year now, and my company withholds tax from my salary every month — so everything should be fine, right?”
This is a quiet assumption held by many Japanese employees working in Taiwan. With payroll withholding in place and HR handling the paperwork, everything appears to be in order. In reality, however, Taiwan’s individual income tax rules are far more complex than commonly assumed, and there are three critical questions that many have never carefully examined: exactly how many days of residence are being counted in your case; whether the Japan-Taiwan tax treaty actually applies to your situation; and, if you hold an Employment Gold Card, whether you are making full use of the associated tax benefits.
May and June mark Taiwan’s annual tax filing season, with the 2026 individual income tax filing deadline falling on June 1. If you are currently working in Taiwan, or have spent a meaningful period of time in the country, this article is one of the most worthwhile reads before the filing season begins.
1. Are You Counting Your Days of Residence Correctly?
In Taiwan, the tax treatment of foreign nationals is directly tied to their number of days of residence. Taiwan’s Ministry of Finance applies the “exclude the first day, include the last day” principle, calculating a foreign national’s days of residence in Taiwan based on the entry and exit stamps in the passport, or on the “Certificate of Entry and Exit Dates” issued by the National Immigration Agency under the Ministry of the Interior. In simple terms, the day of entry is not counted, while the day of departure is included. If you enter and leave Taiwan multiple times within a single tax year, the days from each stay are accumulated, with the passport entry/exit stamps or the Immigration Agency’s Certificate of Entry and Exit Dates serving as the basis for the calculation.
Based on their days of residence in Taiwan, foreign nationals are classified into three different tax statuses, each subject to a distinct method of taxation.
Based on their days of residence in Taiwan, foreign nationals are classified into three different tax statuses, each subject to a distinct method of taxation.
- Fewer than 91 days: Non-resident, salary subject to flat 18% withholding－If your days of residence in Taiwan within a tax year are fewer than 91, you are classified as a non-resident. Salary income from Taiwan sources is subject to withholding at source by the employer at a flat rate of 18% on the gross amount paid, and in principle, no separate individual income tax return is required. However, please note that if you have income that falls outside the scope of withholding — for example, remuneration paid by an overseas employer for services rendered in Taiwan — you are still required to file in accordance with the relevant rules. Where no other reportable income exists, the annual individual income tax filing is generally not required.
- 91 to 182 days: A grey zone where filing obligations are often overlooked－This range is where Japanese employees in Taiwan are most likely to make mistakes. With days of residence falling between 91 and 182, an individual remains classified as a non-resident, and salary income continues to be subject to withholding at source by the employer. However, certain types of income still require self-filing, and this obligation is frequently overlooked. Income falling outside the scope of withholding — for example, remuneration paid by an overseas employer for services rendered in Taiwan — remains subject to a self-filing and tax payment obligation. Many assume that, as long as the company has withheld tax during this period, nothing further is required; yet by overlooking the filing obligation, they may face back taxes and late payment surcharges if the tax authorities subsequently conduct an audit.
- 183 days or more: Resident, taxed under progressive rates－Once the cumulative days of residence in Taiwan reach 183 days or more, the individual becomes a “resident” for Taiwan tax purposes. They must then combine their Taiwan-source income with any remuneration paid by an overseas employer for services rendered in Taiwan, treat the total as taxable income, and file an annual individual income tax return under the progressive tax rates of 5% to 40%. The annual filing period typically runs from May 1 to May 31, with the actual deadline determined by the Ministry of Finance’s official announcement. This year, because May 31 falls on a Sunday, the deadline has been extended by law to June 1.
- Over 300 days: Advanced tax planning under “full-year basis” calculation－For most Japanese employees in Taiwan, reaching 183 days of residence triggers a shift to “resident” status for Taiwan tax purposes, and service remuneration paid by an overseas employer is typically calculated as taxable income on a “days of residence in Taiwan ÷ 365” basis. However, when days of residence extend further, the calculation method undergoes a critical change:
- The 300-day threshold: If the cumulative days of residence in Taiwan within a single tax year reach or exceed 300 days, the tax authorities will often treat the individual as “resident for the full year” when calculating service remuneration paid by an overseas employer — meaning the calculation is based on the full 365 days of the year.
- Brief absences are not deductible:
- Non-first-time entrants to Taiwan: If the individual was already resident in Taiwan during the previous year and reaches 300 days of residence in the current year, the tax authorities will generally apply taxation on a “full-year (365-day)” basis. Even where the period includes return visits to Japan for vacation or short business trips, such days typically cannot be deducted from the days of residence.
- First-time entrants to Taiwan: Days prior to entry can be deducted, but brief absences after entry are generally still included in the calculation.
- Tax planning recommendations:
- Precise control of days: If a significant portion of your salary is paid by the Japanese parent company and your work frequently involves cross-border travel, maintaining your days of residence in Taiwan within the range of 183 to 299 days preserves the basis for taxation proportionate to actual days of residence, and helps avoid having overseas business travel periods treated as Taiwan-based work subject to full taxation.
- Be mindful of crossing the 300-day mark: Once the 300-day threshold is exceeded, the global service remuneration corresponding to duties performed in Taiwan is highly likely to be treated as having been earned in Taiwan for the entire year, resulting in a significant increase in the tax burden.
【Important】Days of residence must be recalculated each year. Even if you filed as a resident last year, the count must restart from zero this year. There have been cases where Japanese employees, due to extended return-to-Japan vacation days during the middle of the year, unknowingly slipped back into non-resident status. In such circumstances, the employer may need to recalculate previously withheld taxes based on the new tax status and process additional payments or refunds, which can sometimes lead to disputes over back taxes or supplementary assessments, causing unnecessary complications.
2. The Japan-Taiwan Tax Arrangement — The Most Powerful Tax-Saving Tool: Are You Using It?
Because there are no formal diplomatic relations between Japan and Taiwan, the two sides are unable to conclude a formal tax treaty. However, in order to spare workers in Japan and Taiwan from the difficulties of double taxation, in November 2015 Japan’s public interest incorporated foundation, the “Japan-Taiwan Exchange Association,” and Taiwan’s “Association of East Asian Relations” signed, in a private-sector capacity, an arrangement carrying effect equivalent to a tax treaty (referred to in Japanese as a “torikime”). It formally took effect from June 2016. The arrangement’s official title is the “Arrangement between the Japan-Taiwan Exchange Association and the Association of East Asian Relations for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income,” and it has applied to relevant income since January 1, 2017.
One of the most significant aspects of this arrangement is that it substantially extended the tax-exemption period for Japanese employees engaged in short-term work in Taiwan — from the original 90 days to “fewer than 183 days of residence in Taiwan.” In other words, provided the conditions are met, Japanese employees working in Taiwan for fewer than 183 days may have their salary income in Taiwan fully exempted from tax, with filing and taxation occurring only in Japan under local tax law.
One of the most significant aspects of this arrangement is that it substantially extended the tax-exemption period for Japanese employees engaged in short-term work in Taiwan — from the original 90 days to “fewer than 183 days of residence in Taiwan.” In other words, provided the conditions are met, Japanese employees working in Taiwan for fewer than 183 days may have their salary income in Taiwan fully exempted from tax, with filing and taxation occurring only in Japan under local tax law.
The Three Requirements for Short-Term Tax Exemption
To qualify for this tax-exemption benefit, the following three conditions must be satisfied simultaneously:
To qualify for this tax-exemption benefit, the following three conditions must be satisfied simultaneously:
- Within any twelve-month period commencing or ending in a given “calendar year,” the consecutive or cumulative days of residence in Taiwan must not exceed 183 days.
It is particularly important to note here that the period under assessment is not limited to a single calendar year, but rather “any consecutive 12-month period.” Accordingly, even if the number of days within a particular calendar year does not exceed 183, the tax-exemption eligibility may still be lost if the cumulative count across years exceeds 183 days. - The salary must be paid by an employer who is a “non-resident of Taiwan.”
That is, the salary must originate from the Japanese parent company, and not from a local Taiwanese subsidiary, branch, or any employer holding tax-resident status in Taiwan. - The salary expense must not be borne by a “Permanent Establishment” (PE) of the employer in Taiwan.
If the Japanese company has established a subsidiary, branch, or representative office in Taiwan, and the salary expense is borne by these entities (for example, where the Taiwanese company records it in its books and lists it as an expense), the tax exemption cannot be applied.
【Important】Filing and Application Procedures
Even where all three requirements above are met and salary income in Taiwan is exempt from tax, a filing must still be made with the Taiwanese tax authorities if the days of residence in Taiwan within a calendar year reach 91 or more. The filing itself cannot be omitted; it is simply that the actual tax payable amounts to zero. Furthermore, the tax-exemption application procedure is relatively cumbersome, typically requiring four to six months of processing time. It is essential to prepare and apply in advance, before the assignment period begins — this is not something that can be left until year-end.
Even where all three requirements above are met and salary income in Taiwan is exempt from tax, a filing must still be made with the Taiwanese tax authorities if the days of residence in Taiwan within a calendar year reach 91 or more. The filing itself cannot be omitted; it is simply that the actual tax payable amounts to zero. Furthermore, the tax-exemption application procedure is relatively cumbersome, typically requiring four to six months of processing time. It is essential to prepare and apply in advance, before the assignment period begins — this is not something that can be left until year-end.
3. Employment Gold Card Holders: Are You Making Full Use of Your Tax Benefits?
Taiwan’s Employment Gold Card is a four-in-one credential designed by the Taiwanese government specifically for foreign high-end professional talent. It integrates a work permit, an Alien Resident Certificate, a re-entry permit, and the Ministry of Labor’s employment permit — a single card that resolves the principal legal-status issues surrounding working and residing in Taiwan. For Japanese professional talent, the Employment Gold Card is not merely a convenient identity credential; it also comes with a tax benefit that many holders do not fully take advantage of — one well worth confirming ahead of each year’s tax filing season.
The Core of the Tax Benefit
Under the current tax-benefit rules, for foreign professional talent holding an Employment Gold Card, where salary income in Taiwan within a single tax year exceeds NT$3 million, 50% of the portion exceeding NT$3 million may be excluded from taxable income for individual income tax purposes. For example, with an annual salary of NT$5 million, of the NT$2 million exceeding the NT$3 million threshold, NT$1 million may be exempted from tax — a considerably significant tax-saving effect. The maximum period for which this benefit applies is five years.
The Correct Method for Counting the Five-Year Benefit Period
This five-year benefit period is calculated not from “the year in which the Employment Gold Card was obtained,” but rather from “the first tax year in which all applicable conditions are simultaneously met.” The applicable conditions include:
The Core of the Tax Benefit
Under the current tax-benefit rules, for foreign professional talent holding an Employment Gold Card, where salary income in Taiwan within a single tax year exceeds NT$3 million, 50% of the portion exceeding NT$3 million may be excluded from taxable income for individual income tax purposes. For example, with an annual salary of NT$5 million, of the NT$2 million exceeding the NT$3 million threshold, NT$1 million may be exempted from tax — a considerably significant tax-saving effect. The maximum period for which this benefit applies is five years.
The Correct Method for Counting the Five-Year Benefit Period
This five-year benefit period is calculated not from “the year in which the Employment Gold Card was obtained,” but rather from “the first tax year in which all applicable conditions are simultaneously met.” The applicable conditions include:
- Holding a valid Employment Gold Card;
- Having days of residence in Taiwan reaching 183 or more in that year, thereby becoming a “resident” for Taiwan tax purposes;
- Having salary income in Taiwan in that year exceeding NT$3 million.
If, in a given year, any one of these conditions is not met, the benefit cannot be enjoyed for that year, nor will that year be counted toward the five-year benefit period. The original five-year period is deferred and held in reserve, and the count begins only from the year in which the conditions are actually satisfied.
Please Confirm Your Eligibility Before the Tax Filing Season
Current regulations do not stipulate that “2026 is the final year for application,” and whether this benefit will continue remains subject to future adjustments to tax law and government policy. That said, for those intending to make use of this benefit, as long as the five-year period has not yet been fully used and the conditions for the year in question are still met, the opportunity to apply remains. Accordingly, Gold Card holders who are eligible but have not yet applied should be sure to confirm their days of residence, salary level, and benefit period before the 2026 filing season, so as not to miss the tax-saving opportunity they would otherwise be entitled to.
【Important】The Benefit Is Not Applied Automatically
The Employment Gold Card tax benefit does not take effect automatically. When filing the annual individual income tax return, the holder must proactively complete the relevant fields and attach supporting documents (for example, a copy of the Employment Gold Card, the Certificate of Entry and Exit Dates, salary income records, and the like). It is advisable to engage an accountant or tax agent well versed in the taxation of foreign professional talent to assist with the process — ensuring the benefit is correctly applied, the documentation is fully prepared, and records are retained for any future audit.
Please Confirm Your Eligibility Before the Tax Filing Season
Current regulations do not stipulate that “2026 is the final year for application,” and whether this benefit will continue remains subject to future adjustments to tax law and government policy. That said, for those intending to make use of this benefit, as long as the five-year period has not yet been fully used and the conditions for the year in question are still met, the opportunity to apply remains. Accordingly, Gold Card holders who are eligible but have not yet applied should be sure to confirm their days of residence, salary level, and benefit period before the 2026 filing season, so as not to miss the tax-saving opportunity they would otherwise be entitled to.
【Important】The Benefit Is Not Applied Automatically
The Employment Gold Card tax benefit does not take effect automatically. When filing the annual individual income tax return, the holder must proactively complete the relevant fields and attach supporting documents (for example, a copy of the Employment Gold Card, the Certificate of Entry and Exit Dates, salary income records, and the like). It is advisable to engage an accountant or tax agent well versed in the taxation of foreign professional talent to assist with the process — ensuring the benefit is correctly applied, the documentation is fully prepared, and records are retained for any future audit.
4. Filing in Practice: Where to Go, and What Documents to Bring?
Having understood the tax rules outlined above, the final question is this: how does one actually carry out the filing in Taiwan?
Where to File
When a foreign national files an individual income tax return, the process must be carried out — based on the address registered on the resident certificate — at the National Taxation Bureau, or its relevant branch or tax collection office, that has jurisdiction over the place of household registration (that is, the place of residence). Taking Taipei City or Kaohsiung City as examples, one may go directly to the foreign taxpayer service counter of the National Taxation Bureau of Taipei or the National Taxation Bureau of Kaohsiung to handle the matter in person.
If the place of work and the place of residence are not in the same county or city, one may first complete the “Alien Individual Income Tax Return” and the related documents, pay the tax at a financial institution, and then mail the second copy of the “Alien Self-Payment Tax Payment Slip” to the National Taxation Bureau with jurisdiction over the place of residence in order to complete the filing.
Checklist of Required Documents
When carrying out the filing, it is advisable to have the following principal documents ready:
Where to File
When a foreign national files an individual income tax return, the process must be carried out — based on the address registered on the resident certificate — at the National Taxation Bureau, or its relevant branch or tax collection office, that has jurisdiction over the place of household registration (that is, the place of residence). Taking Taipei City or Kaohsiung City as examples, one may go directly to the foreign taxpayer service counter of the National Taxation Bureau of Taipei or the National Taxation Bureau of Kaohsiung to handle the matter in person.
If the place of work and the place of residence are not in the same county or city, one may first complete the “Alien Individual Income Tax Return” and the related documents, pay the tax at a financial institution, and then mail the second copy of the “Alien Self-Payment Tax Payment Slip” to the National Taxation Bureau with jurisdiction over the place of residence in order to complete the filing.
Checklist of Required Documents
When carrying out the filing, it is advisable to have the following principal documents ready:
- Passport (including a complete and valid record of entries and exits)
- Alien Resident Certificate (resident certificate)
- Various withholding statements issued by the employer (for example, those relating to salary, severance, performance income, and the like)
- Dividend statements and other income certificates obtained in Taiwan (if any)
- Supporting documents relating to remuneration paid by an overseas employer for services rendered in Taiwan (for example, contracts and payment records)
If one wishes to apply the Employment Gold Card tax benefit, the following must additionally be attached:
- A copy of the Employment Gold Card
- Documents proving that days of residence in Taiwan reached 183 in the year in question (for example, the Certificate of Entry and Exit Dates)
- Materials proving that salary income in Taiwan exceeded NT$3 million in the year in question (for example, salary statements and withholding statements)
Online Filing Is Also Available
Foreign nationals who have a National Health Insurance card reader or a Citizen Digital Certificate may complete the filing of the alien individual income tax return online through the Ministry of Finance’s “eTax Portal, Ministry of Finance” online filing system, without needing to visit the National Taxation Bureau in person. However, if it is the first time filing in Taiwan, or if the income situation is relatively complex (for example, cross-border services, multiple sources of overseas income, or an application for the Employment Gold Card benefit), it is advisable to attend in person or to engage a professional accountant for assistance, confirming that all information is entered correctly so as to avoid the risk of subsequent back taxes or audits.
In Closing: A Single Mistake Can Carry No Small Cost
Taiwan’s individual income tax rules are not easy to grasp intuitively for many Japanese nationals working in Taiwan for the first time. The method for calculating days of residence; the filing obligation within the “grey zone” of 91 to 182 days; the details of the three requirements under the Japan-Taiwan tax arrangement; and the five-year limit and proactive filing requirement of the Employment Gold Card tax benefit — each of these elements can, through a lack of understanding, lead to overpayment of tax, and even to the risk of back taxes and late payment surcharges.
Hall Chadwick Taiwan provides a dedicated Japanese-language service desk, where a professional team well versed in the tax rules of both Taiwan and Japan assists Japanese nationals in Taiwan — from confirming days of residence and applying under the Japan-Taiwan tax arrangement, through to the annual individual income tax filing — offering Japanese-language communication and document preparation services throughout the entire process, so that you can work, and file your taxes, with peace of mind in Taiwan.
The 2026 individual income tax filing deadline is already close at hand. Should you have any questions, you are welcome to contact us right away, and let our professional team clarify the tax details for you all at once.
Hall Chadwick Taiwan provides a dedicated Japanese-language service desk, where a professional team well versed in the tax rules of both Taiwan and Japan assists Japanese nationals in Taiwan — from confirming days of residence and applying under the Japan-Taiwan tax arrangement, through to the annual individual income tax filing — offering Japanese-language communication and document preparation services throughout the entire process, so that you can work, and file your taxes, with peace of mind in Taiwan.
The 2026 individual income tax filing deadline is already close at hand. Should you have any questions, you are welcome to contact us right away, and let our professional team clarify the tax details for you all at once.