There are no borders in the workplace, and modern technology is transforming how labor services are provided. An increasing number of Taiwanese professionals are employed by overseas companies, choosing to reside domestically while providing services, communicating with overseas teams through video conferencing or email to complete various projects or daily work. Labor compensation obtained from overseas employment for services provided within the ROC territory constitutes ROC－sourced salary income and is legally required to be reported on individual income tax returns.

The National Taxation Bureau of Kaohsiung, Ministry of Finance states that according to Paragraph 3, Article 8 of the Income Tax Act, compensation for labor services provided by domestic residents within ROC territory constitutes ROC-sourced income, regardless of whether the employer’s location or the salary remittance account is located within or outside of the Republic of China.

The Bureau provides the following example： A Taiwanese software engineer was employed by a Silicon Valley startup in the US in 2024 to handle remote development projects. The engineer completed all work in Taiwan through video conferences and email, with salary remitted monthly by the US company to his US bank account. Although the salary was not remitted to a domestic account, since the labor services were provided in Taiwan, his salary income constitutes ROC－sourced income and should be included in his 2024 individual income tax return.

The Bureau emphasizes that compensation obtained from overseas employers for labor services provided within the ROC is not within the scope of income data provided by tax authorities for taxpayer inquiry. If taxpayers have under-reported or omitted such income for themselves, their jointly－filing spouses, or dependent relatives, they can avoid penalties under Article 48-1 of the Tax Collection Act by voluntarily completing supplementary filing and tax payment with interest to their local tax bureau before being reported or investigated. For filing-related questions, please call our toll－free service hotline 0800-000-321 or visit the Bureau’s website （https://www.ntbk.gov.tw） to make inquiries online using the National Tax Smart Assistant “National Tax Helper.”，

Provided by： First Individual Income Tax Section
Contact person： Section Chief, Ms. Lin. 　Phone number：（07）7256600 ext. 7270
Contributor： Ms. Lee. 　　　　　　　　　 Phone number：（07）7256600 ext. 7222