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Taiwan - TAXES ACCOUNTING |
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Corporate tax
Tax rate for resident companies |
Companies are taxed on their income according to the scheme of progressive rate: Tax schedule 2002: 0% (taxable income up to 50 000 NTD), 15% (taxable income between 50 001 and 100 000 NTD, beyond, 25%).
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Taxe rate on long-term capital gains |
Capital gains are taxed in the same way as ordinary income.
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System governing groups of companies and dividends paid by subsidiaries to their parent companies |
Dividends are subjected to a witholding tax at the rate of 25%, reduced to 20% within the framework of the Status for Investment by Foreign Nationals.
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Tax rate on branches |
In Taiwan, the corporate tax is applied on branches as well as on the others companies.
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Income tax
Fiscal year |
The fiscal year begins on January 1st and ends on December 31st of the same year.
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Income tax rate |
Individuals income are subjected to a tax with a progressive rate which varies between 6% and 40%. Tx schedule 2000:
From 0 to 370,000 NTD: 6%
From 370,000 to 990,000 NTD: 13%
From 990,000 to 1,980,000 NTD: 21%
From 1,980,000 to 3,720,000 NTD: 30%
Beyond 3,720,000 NTD: 40%.
Non resident aliens are taxed at 20% on gross income.
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Tax deductions or
other allowances |
Deductions:
Medical care and insurance allowances are often deductible.
Losses of goods due to natural disasters.
Loans interests paid for the purchase of the main home.
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VAT rates
Standard rates |
The rate of common law is 5% (exemption for health services, deals on grounds and sale of books). Some activities are subjected to a tax on the receipts with a rate varying from: 1% for reinsurance activities, 5% for bank activities, insurance and brokerage and 15% to 25% for bars and restaurants. A merchandise tax is levied ad valorem, on some products (60% for petrol for example).
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Reduced rates |
No reduced rates.
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Other important taxes
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Name of tax |
Rate |
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Land taxes
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2% to 50% according to the value of the property good.
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Donations
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4% to 50%
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Property tax
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0,2% to 5,5%
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Tax of movable transfer
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0.03%
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Accounting
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Professionals and representative organizations
The "Federation of Certified Public Accountants Associations of Chinese Taiwan ".
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Export Entreprises SA ©, All rights reserved
Last modified in
January 2003
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