The National Taxation Bureau of Taipei, Ministry of Finance, states that, in order to enhance Taiwan's industrial competitiveness and attract foreign specialist professionals, preferential income tax treatment is provided pursuant to Article 22 of the Act for the Recruitment and Employment of Foreign Professionals. Foreign nationals who are recognized as “Foreign Specialist Professionals” in fields publicly announced by the competent central authorities, and who are approved to work in the R.O.C. for the first time and meet the statutory requirements, are eligible for the tax incentives. Such incentives are available for a period of five consecutive tax years, beginning with the year in which the Foreign Specialist Professional has both: (1) resided in the R.O.C. for at least 183 days during the tax year, and (2) earned annual salary exceeding NT$3,000,000. For each qualifying year, 50 percent of the amount of salary income in excess of NT$3,000,000 may be excluded from the taxpayer’s gross consolidated income, subject to applicable regulations. In order to claim this exclusion, the taxpayer must file the required forms with their annual individual income tax return to the National Taxation Bureau and comply with all relevant procedural requirements.

The Bureau further explains that, pursuant to Article 3 of the Regulations Governing the Reduction and Exemption of Income Tax for Foreign Specialist Professionals, a foreign national who has obtained a work permit as a Foreign Specialist Professional issued by the Ministry of Labor or the Ministry of Education, or who holds an Employment Gold Card issued by the National Immigration Agency, Ministry of the Interior, and who satisfies all of the following conditions, may apply for the preferential tax treatment when filing the annual individual income tax return:

1. The individual has, for the first time, been approved to reside in the R.O.C. for the purposes of work.

2. The individual engages in professional work in the R.O.C. related to his or her recognized special expertise.

3. During the five years preceding the date of commencement of professional employment or the issuance date of the Employment Gold Card, the individual neither had household registration in the R.O.C. nor qualified as an individual residing in the R.O.C. under the Income Tax Act.

In addition, pursuant to Article 5 of the aforementioned Regulations, the annual individual income tax return must be duly filed within the statutory filing deadline, and the application for the tax incentive must be submitted together with the required supporting documents.

The Bureau further illustrates the application of the Regulations with the following example:
Mr. B was first approved to apply for the tax incentive for Foreign Specialist Professionals in taxable year 2020. From 2020 through 2023, he duly filed his annual individual income tax returns within the statutory filing deadline and was granted the preferential tax treatment in accordance with the Regulations.

However, although Mr. B continued to satisfy the aforementioned eligibility requirements in taxable year 2024, he failed to file his individual income tax return and to submit the application for the tax incentive within the statutory filing deadline. It was not until December 10, 2025, that he completed the delinquent filing and submitted the application. Consequently, he was no longer eligible to apply the preferential tax treatment for taxable year 2024.

Mr. B's salary income derived from professional work amounted to NT$6.71 million (net of the special deduction for salary income), and the full amount was therefore required to be included in his gross consolidated income. Accordingly, the Bureau assessed a tax deficiency of over NT$540,000.

The Bureau stresses that the tax preference for Foreign Specialist Professionals is not automatic. Eligible individuals must proactively apply for the incentive and file their Individual Income Tax return within the statutory filing period.

Furthermore, the Bureau urges employers to assist their foreign professional recruits in understanding these regulations. By ensuring these tax rights are protected, businesses can help improve retention and contribute to a more welcoming, internationally competitive environment in Taiwan.

(Contact: Ms. Yang, Head of the Foreign Taxpayer Service Section, Individual Income, Estate and Gift Tax Division; Tel: 02-23113711 ext. 1650)