Chinese Taipei

Corporate Tax Guide

Time of Update: 4/05/2026

CIT rate 20%; undistributed earnings subject to 5% surtax. IBT at 12% on certain tax-exempt income. VAT 5%. Non-residents: 21% dividend WHT, 15% interest WHT, 20% royalty WHT.

TKEG Expat ™ Chinese Taipei Corporate Tax Guide

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Chinese Taipei Corporate Tax Brief

Data Source PwC World Tax Summary
OCED Statistic

Chinese Taipei Corporate Income Tax (CIT)

General CIT Rate:

CIT Return Due Date:

No later than the fifth month after the end of the tax year.

CIT Payment Due Date:

No later than the fifth month after the end of the tax year.

CIT Estimated Payment Due Date:

CIT is expected to be paid in the ninth month of the enterprise's fiscal year.

Chinese Taipei Withholding Tax (WHT)

Resident Withholding Tax (Dividend/Interest/Royalty):

0/10/10

None-Resident Withholding Tax (Dividend/Interest/Royalty):

21/15/20

Chinese Taipei Value-Added Tax (VAT)

General VAT Rate:

Learn More

Chinese Taipei Capital Gain Tax (CGT)

General Capital Gain Tax Rate:

Capital gains are generally taxed at the standard CIT rate of 20%. Securities gains are exempt from CIT but subject to IBT at 12% (TWD 600,000 deduction; 50% exempt if held over 3 years). Real estate transactions are subject to the Joint Property Tax System 2.0 at 15%–45% based on holding period (for properties acquired after January 1, 2016). Capital losses may be carried forward for 5 years.

Chinese Taipei Effective Tax Rate (ETR)

Composite Effective Average Tax Rate:

N/A

Composite Effective Marginal Tax Rate:

N/A

Additional info

Taiwan Corporate Income Tax

Income Basic Tax

Value-added Tax

Gross business receipts tax (GBRT)

Property tax

Taiwan Corporate Income Tax

The corporate income tax (CIT) rate in Taiwan is 20%.
Resident tax rates:

Up to TWD 120,000 — Exempt
TWD 120,001 and over — 20% of total taxable income

Undistributed Earnings Surtax: An additional 5% tax is imposed on current-year earnings that remain undistributed by the end of the following year.
Non-resident companies with a fixed place of business (FPOB) or business agent in Taiwan are taxed at the same 20% rate.

References https://taxsummaries.pwc.com/taiwan/corporate/taxes-on-corporate-income

Income Basic Tax

All Taiwan resident companies, and non-resident companies with an FPOB or business agent in Taiwan, must calculate IBT if they earn certain tax-exempt income. For taxable year 2025, basic income is calculated per government-stipulated formulae with a deduction of TWD 600,000. The IBT rate is 12%. If IBT exceeds regular CIT, the taxpayer pays regular CIT plus the difference. If regular CIT exceeds IBT, no additional payment is required.
Pillar Two (Global Minimum Tax): Draft proposals are under review to raise the IBT rate to 15% for Taiwanese MNE entities meeting OECD Pillar Two thresholds, potentially effective from 2025 onwards.

References https://taxsummaries.pwc.com/taiwan/corporate/taxes-on-corporate-income

Value-added Tax

VAT is applicable to general industries, and the VAT rate is 5%. Under the VAT system, each seller collects output VAT from the buyer at the time of sale, deducts input VAT paid on purchases from output VAT, and remits the balance to the tax authority.

References https://taxsummaries.pwc.com/taiwan/corporate/other-taxes

Gross business receipts tax (GBRT)

GBRT is applicable to specified industries (e.g. financial institutions, small businesses). For investment trust companies, securities and futures firms, short-term commercial paper enterprises, and pawnshops, the rate is 2%. The GBRT rate on revenues derived from the core business operations of banks and insurance enterprises is 5%. For re-insurance enterprises, the rate is 1%.

References https://taxsummaries.pwc.com/taiwan/corporate/other-taxes

Property tax

Land and buildings are annually assessed for tax based on their officially assessed values as determined by government authorities.

Land Value Tax (LVT): 1% to 5.5% of assessed land value
Building Tax (non-residential): 1.5% to 5% of assessed value
Building Tax (residential): 1% to 4.8% of assessed value
Land Value Increment Tax (LVIT): Progressive rates of 20% to 40% on land value gains upon sale
Real Property Transfer Tax (Joint Property Tax 2.0): 15% to 45% on gains from properties acquired after January 1, 2016, based on holding period

References https://taxsummaries.pwc.com/taiwan/corporate/other-taxes