Aliens working or residing in Taiwan may be unfamiliar with Taiwan's tax system and filing requirements, making them prone to errors such as underreporting income or claiming exemptions and deductions that do not comply with the applicable regulations when filing their individual income tax returns. The National Taxation Bureau of Kaohsiung, Ministry of Finance, has identified three common filing errors and reminds aliens to pay attention to the following when filing their returns:
| Common Mistake |
Correct Approach |
| 1. Claiming the Full Exemption and Standard Deduction After Early Departure When departing Taiwan partway through the year and filing an income tax return upon departure, some taxpayers still claim the full-year exemption and standard deduction. |
Calculate Based on the Proportion of Days of Residence in Taiwan The exemption and standard deduction should be calculated based on the proportion of the number of days the taxpayer resided in the territory of the Republic of China to the total number of days in the year. |
| 2. Failing to Report Salary or Allowances Paid by an Overseas Employer During the period of employment in Taiwan, some taxpayers mistakenly believe that salary or allowances paid by an overseas head office or foreign employer do not need to be reported. |
If the Place Where the Services Are Performed Is Taiwan, the Income Must Be Reported Salary earned from services performed within Taiwan constitutes income from sources in the Republic of China, regardless of whether it is paid by a domestic or foreign employer, and must be reported in accordance with the regulations. |
| 3.Claiming a Foreign Spouse or Dependent Relative without Attaching Supporting Documents When claiming a spouse or dependent relative who does not reside in Taiwan, some taxpayers only provide the basic information without attaching the relevant supporting documents. |
Attach the Required Supporting Documents in Accordance with the Regulations |
The Bureau gave the following example: Alex, a foreign engineer, was hired by a Taiwanese technology company on January 1, 2025. During his employment in Taiwan, in addition to receiving a monthly salary from the Taiwanese company, he also received a monthly allowance of US$2,000 from its U.S. parent company, which was transferred to his U.S. bank account. Due to a subsequent change in his position, Alex departed Taiwan on July 3, 2025, and did not return. Before departing, he filed his 2025 individual income tax return upon departure and claimed his 63-year-old mother, who resides abroad, as a dependent relative. Under the applicable regulations, Alex resided in Taiwan for 184 days during the year. Therefore, his exemption and standard deduction should be calculated based on the proportion of 184 days to the 365 days in the year, amounting to NT$48,899 (NT$97,000 × 184/365) and NT$66,039 (NT$131,000 × 184/365), respectively. In addition, because the allowance paid by the U.S. parent company was earned from services Alex performed in Taiwan, it constitutes income from sources in the Republic of China even though it was paid by an overseas company and transferred to his U.S. bank account. Alex should therefore convert both the salary paid by the Taiwanese company and the allowance paid by the U.S. parent company into New Taiwan dollars and include them as salary income in his tax return. As for claiming his mother, who resides abroad as a dependent relative, he must attach documents proving the relationship and relevant documents issued by the government authority of her place of residence, and claim the exemption based on the proportion of the number of days he resided in Taiwan.
The Bureau reminds aliens filing individual income tax returns to keep in mind three key points: "calculate exemptions and deductions based on the number of days of residence upon departure, do not omit salary paid by overseas employers, and prepare the required supporting documents for dependents residing abroad." If taxpayers discover that they have failed to comply with the regulations or have omitted income from their tax returns, they should promptly file an amended return and pay the additional tax and interest voluntarily before being reported or before an investigator designated by the tax collection authority initiates an investigation, in order to avoid penalties. For inquiries, please call our toll-free service line at 0800-000321, or visit the Bureau's website at https://www.ntbk.gov.tw to make inquiries online through the "National Tax Helper.”
Provided by: First Individual Income Tax Section
Contact person: Section Chief, Ms. Lin. Phone number: (07)7256600 ext. 7270
Contributor: Mr. Chiang. Phone number: (07)7256600 ext. 7227