Taiwan MOF Explains Individual Income Tax Withholding Rules for Residents, Nonresidents

The Taiwanese Ministry of Finance Oct. 11 clarified the individual income tax withholding rules based on taxpayer residence. The clarification includes: 1) the criteria to determine taxpayer residence; 2) that monthly salary payments to residents are withheld at a rate of 5 percent, or at a rate based on the wage withholding tax regulations; and 3) that monthly salary payments to nonresidents are withheld at a rate of 18 percent, or at 6 percent if the taxpayer’s income is less than the monthly baseline threshold. [Taiwan, Ministry of Finance, 10/11/21]

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