Q&A

TAX

The comparison table between 1.0 and 2.0 of Property and Land combined tax

Applicable Tax Rate

Taiwan Identity - Individual

Taiwan Identity - Company

Non-Taiwan Identity - Individual/Company

Version 1.0

Version 2.0

Version 1.0

Version 2.0

Version 1.0

Version 2.0

45%

Within 1 year

Within 2 years

No specify

Within 2 years

Within 1 year

Within 2 years

35%

Over 1 year but below 2 years

Over 2 years but below 5 years

No specify

Over 2 years but below 5 years

Over 1 year

Over 2 years

20%

Over 2 years but below 10 years

Over 5 years but below 10 years

All Cases

Over 5 years

None

None

Applicable Subjects : Individuals living in Taiwan and company headquarters are doing business in Taiwan and secured property after 1 Jan 2016

 

Table prepared by report NG Kwai Yung          Source of Information: Ministry of Finance 

Version 2.0 will be implemented on July 1, 2021


① Is the tax rate of 20-45% regardless of the property price?


  Yes, it is.


② What does it mean that foreigners/companies do not need to pay taxes in the 20% column?


  "None" means that foreigners do not have the opportunity to apply 20%. If it is an ordinary individual, it will be sold only one year after the purchase, which is 35%. Whether it is sold for two years or 15 years, it is 35 %.


Q2. Hong Kong applicants have obtained Taiwan status and have paid taxes in Hong Kong in that year. Do they still have to declare and pay taxes in Taiwan in that year?


Answer: If you have a Taiwan ID card, unless it can be proved that the focus of life is not in Taiwan (the objective standard is probably that there is no health insurance in Taiwan), your global income will be taxed, but overseas (such as Hong Kong) income is 6.7 million Taiwan dollars deductible. If tax is still payable after deduction, the amount of overseas income that has been taxed in the country of origin can be used for tax deduction in Taiwan


Answer: If you have a Taiwan ID card, unless it can be proved that the focus of life is not in Taiwan (the objective standard is probably that there is no health insurance in Taiwan), your global income will be taxed, but overseas (such as Hong Kong) income is 6.7 million Taiwan dollars deductible. If tax is still payable after deduction, the amount of overseas income that has been taxed in the country of origin can be used for tax deduction in Taiwan

Taiwan originally only levied taxes on the personal income of residents in Taiwan, but from 2010 onwards, it has changed to use global income as the basis for personal taxation. Taiwan will also implement the Common Reporting Standard (CRS) in 2019.

Taiwan residents' income overseas (such as Hong Kong) is less than NT$1 million, and there is no tax. If the overseas income is more than NT$1 million, plus the income in Taiwan, and the total income exceeds NT$6.7 million, the overseas income must be declared and taxed. The tax amount is the total income minus the tax allowance of 6.7 million and then multiplied by 20%.

After obtaining Taiwanese status, as long as you have not lived in Taiwan one day during the year, overseas income is not taxed. In addition, during the period of staying in Taiwan with a residence permit, if you live in Taiwan for more than 183 days in that year, you also need to declare overseas income

Tax update:

Example: Hong Kong applicants who have obtained Taiwan status and have paid taxes in Hong Kong during the year, then declare as follows in Taiwan:

If you have a Taiwan ID card, unless it can be proved that you are not in Taiwan (the objective standard is probably that there is no health insurance in Taiwan), then global income will be taxed, but overseas (for example, Hong Kong) income is 6.7 million Taiwan dollars deductible, after deduction If tax is still required, the amount of overseas income that has been taxed in the source country can be used to deduct tax in Taiwan


In Taiwan, those who have reached the age of 25 and are under the age of 65 and have not participated in labor, agriculture, public education, or military insurance will be included in the national annuity insurance. However, the national annuity insurance is non-compulsory social insurance. There are no penalties. However, if no payment is made, there will be no valid insurance years and no benefits will be paid in the future.

When trading stocks in Taiwan, a securities transaction tax (0.3% of the transaction value) is payable when the stock is sold. In addition, the dividends received annually for holding stocks, that is, dividend income, are also subject to taxation. There are two taxation methods, one of which is optional;

The first is the combined taxation, which can be combined with the total annual income for tax purposes; the second is the separate taxation, which means that the tax is levied at a single rate of 28% on dividends.

Taiwan originally only taxed residents' personal income within Taiwan, but since 2010, it has changed to global income as the basis for personal taxation. Taiwan will also implement the Common Reporting Standard (CRS) in 2019.

Taiwan residents who earn overseas (for example, Hong Kong) earn less than NT $ 1 million and are not subject to tax. If the overseas income exceeds NT $ 1 million, plus the income in Taiwan, and the total income exceeds NT $ 6.7 million, you must declare and pay overseas income. The tax amount is the total income minus the tax-exempt amount of 6.7 million and multiplied by 20%.

After obtaining Taiwan status, overseas income will not be taxed as long as he has not lived in Taiwan one day in the current year. In addition, during the period of stay in Taiwan with a residence permit, if you have lived in Taiwan for more than 183 days in the current year, you need to declare overseas income

Immigration and residence

The residence permit is an identity document used by the Taiwanese government to prove the legal residence of Hong Kong and Macao residents, foreigners, people from the mainland, or nationals without registration in Taiwan. It is issued by the Immigration Department of the Ministry of the Interior.

The National Identity Card is the identity certificate of a national registered in Taiwan and issued by the Ministry of the Interior. The residence permit and national identity card also have the right to universal health insurance, further education and employment, investment in a company, application for a monthly phone card, bank account opening, and property sale.

However, the residence permit committee does not have some national rights and obligations, such as no Taiwan passport, no social benefits, no voting rights, no ability to serve as a civil servant, no obligation to military service, etc. The residence permit cannot be passed to the next generation.

In Taiwan, all male nationals between the ages of 19 and 36, called men of service age (military men), must perform military service.

However, Taiwan has been fully converted to a recruiting system on January 1, 2018. Men born on or after January 1, 1994 do not need to perform another year of military service and instead receive four months of military training.

For men born on or before December 31, 1993, they only need to perform alternative service for one year to serve in the government or public institutions.

Yes, when your child obtains a residence permit, he will receive the same education treatment as a local child with household registration in Taiwan.

In fact, there is no conflict between immigrating to Taiwan and immigrating to the United States, Canada, Britain and Australia. First naturalize Taiwan as a resident of Hong Kong and Macao, and then immigrate to the United States, Canada, Britain and Australia. There is no need to give up Taiwanese status. It can be described as one more passport and one more protection.

The advantage of immigrating to Taiwan is that the threshold for investment immigration is low, only 6 million Taiwan dollars (about 1.6 million Hong Kong dollars), and you can get an ID card and passport as soon as you live for one year. In addition, local consumer goods are cheap.

There is also universal health insurance and medical insurance, and Hong Kong and Taiwan are very close regardless of distance and culture.


The Taiwan government has strict supervision of immigration companies. All immigration consultants in immigration companies must pass the training of immigration professionals and pass the exam before they can obtain the professional license issued by the Taiwan Immigration Department.

You must also set up a company and register with the Immigration Department in order to become a legal immigration company. All registered immigration companies have a compensation mechanism for immigration disputes.

The person in charge of the immigration company must pass the credit check and no criminal record, and all consultants used by the company must also have no criminal record. In fact, immigration companies in many countries in the world must be licensed and registered, including the United States, the United Kingdom, Canada, Australia, and New Zealand, but Hong Kong lacks supervision of the immigration industry.

Education, medical care, military service, etc

In Taiwan, all male nationals who have reached the age of 19 to 36, called military men (service men), are required to perform military service.

However, Taiwan has been completely changed to a recruiting system since January 1, 2018. Men born on or after January 1, 1994 do not need to serve another year of military service, and instead receive four months of military training.

For men born on or before December 31, 1993, they only need to serve one year of replacement service to serve the government or public institution

After becoming a national of Taiwan, all nationals except adult males are required to serve in the military service. They are required to participate in the national health insurance after six months of residence. The monthly health insurance premium is based on their working income. If they do not have a job, the current out-of-pocket premium is NT$749 per month.

In addition, persons working in Taiwan are required to participate in the Labour insurance, which is applied for by the employer to the bureau of Labour insurance. Unemployed persons aged between 25 and 65 are automatically included in the national annuity insurance. The current premium is NT$932 per month.

When reaching 65 years old, can get annuities every month according to regulation or one-time draw, in order to safeguard oneself or its family basic economy lives

If you are expected to leave Taiwan for more than 6 months, you can choose to "continue to increase the insurance" or "handle the suspension of insurance". If you choose to continue to cover, as long as you continue to pay health insurance premiums while you are away from Taiwan, you can continue to enjoy health insurance medical benefits. If an unforeseen emergency injury or childbirth occurs overseas, you should provide the original medical expenses receipt, expense details, diagnosis certificate and a copy of the passport's current immigration record within 6 months after applying for medical treatment. Nuclear withdrawal

National Health Insurance in Taiwan is a compulsory government medical insurance. Regardless of whether the employee is a citizen or not, as long as he has a residence permit and has lived in Taiwan for 6 consecutive months, he can only leave the country once during the period. No more than 30 days. To the same medical benefits as the locals.

After the university entrance exam was abolished in 2002, Taiwan replaced it with a multi-entry program. High school promotion is mainly divided into three channels: star recommendation, individual application, and test admission. The first two are selective admissions, and the latter is test admissions.

All high school students must first pass the university academic ability test (referred to as the academic test), which is held at the end of January and early February each year. Each student has to take five subjects (Chinese, English, Mathematics, Society, and Nature). Recommend or apply individually for each university department.

Students who are not selected for admission can take the designated subject examination (referred to as the test), which is held in July each year and is divided into three groups (grammar, science, technology, agriculture and agriculture), and will be distributed to university subjects according to the test results and optional system.

Yes, for example, Waldorf, Nature School, Forest School, Private School, International School, Public School, etc. are diverse and each has its own advantages. In general, private schools focus on English and also offer IB courses. In public schools, elementary schools promote happily studying and you can apply for a residence permit.

Yes, when your child obtains a residence permit, he or she will have the same education treatment as a child with a household registration in Taiwan

Market real estate

Taiwan's building area is calculated in "pings", and 1 ping is approximately 35.6 square feet. The public ratio is the area of public space and facilities shared by all residents outside what we call "saleable area", which is generally 20% ~ 40%. For example, a unit with a building area of 20 pings, which is 20 x 35.6 = 712 feet,

If the unit's public ratio is 30%, the saleable area is 712 x 70% = 498 feet. Therefore, the larger the public ratio, the smaller the practical area.

Yes, but self-occupied buildings cannot be counted as investment immigration projects, and there are many restrictions. It is not easy for Hong Kong and Macao residents to apply for a mortgage from a bank, and Taiwanese people are required to guarantee it. The general loan amount does not exceed 5 million Taiwan dollars. In addition, in order to suppress the property market, the Taiwan government introduced a unified land and housing tax in 2016. Under the new tax system, foreigners can purchase non-ownership units, and the profits from selling properties will be as high as 45%. In addition, the rental return rate in Taiwan is relatively low, only about 1%, and short-term rental may be more cost-effective.

6 million NTD investment immigrants

In simple terms, it is the system used by the Taiwanese government to manage the population. The household registration area is divided according to administrative regions. The agency responsible for household registration and management is called the household affairs office.

Your rights and obligations, such as elections, health care, and education, will also vary depending on where you are registered. After immigrating to Taiwan, you are free to set up a residence and live freely. Where you set up depends on your personal needs, home ownership or rental address.

Yes, entrepreneurial immigration depends on different cases. The success rate of approval is difficult to predict, and it must achieve a performance of NT $ 3 million per year, or hire three Taiwanese employees, and live for five consecutive years, living for 183 days a year The above can be naturalized, which may be difficult for the average person.

On February 8, 2018, Taiwan implemented the Law on the Recruitment and Employment of Foreign Professionals, relaxed the relevant regulations on visas, work, and residence of various foreign professionals in Taiwan, improved insurance, tax, retirement, and other benefits, and issued combined work permits. The four-in-one "employment gold card" for residence visas, residence permits for foreigners and re-entry permits is also applicable to Hong Kong and Macao residents.

Since the implementation of the measures, more than 400 employment gold cards have been issued. Hong Kong people account for 11%, which is the second place to be issued. However, the employment gold card is only a work permit, and no matter how long you stay, you can't naturalize Taiwan.

Yes, Hong Kong and Macao residents holding foreign passports in Taiwan will be considered foreigners. Foreigners must naturalize and abandon their foreign passports in order to become a citizen of Taiwan.

If you do not choose naturalization, foreigners can invest in work and residence, obtain a residence permit, live in Taiwan for a long time, and enjoy universal health insurance.

After that, you can stay in Taiwan legally for 5 consecutive years and live for more than 183 days each year, you can apply for permanent residence, and you can freely enter and leave and live in Taiwan indefinitely without any conditions.

The draft "New Economic Immigration Law" previously announced by Taiwan mainly applies to foreign professionals, intermediate-level technical manpower and overseas Chinese.

The regulations on relaxation, new job qualifications, residence and permanent residence, and relatives have been relaxed, but the investment immigration threshold for foreigners has not been relaxed and remains unchanged. Therefore, the law is not targeted at Hong Kong and Macau residents.

As for Hong Kong and Macau residents with 6 million Taiwan dollar investment immigration, that is, they can apply for settlement after investing and staying for a continuous year, the relevant regulations remain unchanged for the time being.

On December 27, 2017, the Taiwan Executive Yuan announced that the 2018 Immigration Law will undergo major revisions. In response to Taiwan's aging population and brain drain, its immigration policy will more carefully regulate Taiwan's lack of talents. I believe that in the near future, it will be more open to professional talents, but there may be restrictions on the age and threshold of immigrants. In addition, since June 2019, the number of investment immigrants has increased sharply due to Hong Kong's anti-revision incidents. Now the qualification background checks on applicants will be more stringent, and the approval time for investment plans will continue to increase. Wang Xing sigh then.

Yes, but subject to quarantine and approval by relevant government departments, it is recommended to leave it to a professional pet immigration company.

The main applicant or spouse may apply for family reunification with parents or adult children after naturalization in Taiwan, and then stay in Taiwan for a continuous period of 1 year and leave within 30 days during the period to apply for naturalization.

Yes, but the mainland spouse's application process will be more complicated and the time required for naturalization will be longer. In order to be naturalized in Taiwan, you must abandon the mainland household registration, and the cost is extra.

Yes, but the mainland spouse's application process will be more complicated and the time required for naturalization will be longer. In order to be naturalized in Taiwan, you must abandon the mainland household registration, and the cost is extra.