Payroll taxes
in Taiwan (China).

SALARY PAYMENT IN New Taiwan dollar (TWD, NT$, $)

CONTRACT LANGUAGES Chinese / English

PAYROLL TAX 17.152%

PAYROLL CYCLE Bi-Weekly or Monthly

TIME TO HIRE 12 hours
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Taiwan

What is the average employer tax rate in Taiwan (China)?

Resident companies and Taiwan branches of foreign companies are subject to a corporate income tax rate of 20%.

Note, an additional profit retention tax of 5% applies to earnings of a corporation that are undistributed by the end of the following year. Taiwan branches of foreign companies are not required to pay this tax.

See the 2023 Corporate Income Tax rates below:

Taiwan – 2023 CIT tax rates

Taxable income (KRW)	Tax rate
0 – 120, 000	0%
120,001 and over	20%

What is the average employee tax rate in Taiwan (China)?

Employees in Taiwan must pay the applicable rate of withholding tax, which is progressive and ranges from 5% to 40% depending on income:

Taiwan – Individual Income Tax

Taxable Income (NTD)	Tax rate 2023
0 – 560,000	5%
560,001- 1,260,000	12%
126,000,00 – 2,520,000	20%
2,520,001-4,720,000	30%
4,720,000+	40%

Employer contributions in Taiwan (China)

In Taiwan, employers are required to make several compulsory contributions on behalf of their employees. These contributions include Labor Insurance, National Health Insurance, Labor Pension and the Employee Stabilization Fund.

Taiwan – Employer contributions

Contribution item	Contribution rate
Labor Pension	6% (additional payments voluntary)
National Health Insurance	5.17%
Labor Insurance	1 %
Employment Stabilization Fund	Varies, but is around 0.1% of the monthly salary.

Employee contributions in Taiwan (China)

Employees in Taiwan must pay the applicable rate of withholding tax from their salary. Additionally, employees must make contributions to pension and health insurance funds. Health insurance is mandatory for all employees in Taiwan with an annual contribution rate of 8%–17%. Pension contributions are mandatory for the employerr, but optional for the employee up to 6%.

Employee contributions for 2023:

Taiwan – Employee contributions

Contribution item	Contribution rate
National Pension Fund	0-6% (voluntary)
National Health Insurance	3.545%
Labor Insurance	2%

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Your business can easily hire employees in Taiwan (China) without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What is the tax bureau of Taiwan called?

The Ministry of Finance is responsible for taxation in Taiwan, and the National Taxation Bureau is the administrative authority for taxation.

Is there an employer payroll tax contribution in Taiwan?

Yes, in addition to withholding income tax, employers in Taiwan must deduct various social contributions such as pension, labor insurance, and health insurance contributions. These are similar to US payroll tax contributions.

How does the payroll tax system of Taiwan work?

Payroll taxes and mandatory contributions are deducted at source from monthly payroll.

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