Any person who receives income from a source within Taiwan must pay Taiwanese income tax. The tax year runs from January 1 to December 31. Foreign taxpayers are divided into two categories: non-residents and residents. Tax rates are determined by length of stay, not the type of visa held by an individual.
A non-resident who stays in Taiwan no more than 90 days within any tax year will have income tax withheld by the employer (for remuneration received in Taiwan) at a rate of 20 percent of gross income. The individual does not have to file an income tax return. Remuneration paid offshore for services rendered in Taiwan will not be subject to Taiwanese tax.
A non-resident who stays in Taiwan for more than 90 days but less than 183 days within any tax year will have income tax withheld by the employer (for all remuneration, whether paid inside or outside Taiwan) at a rate of 20 percent of gross income. The individual must file an income tax return. Normally, the extension of any visa beyond 90 days will require a certificate from the Tax Bureau stating that such income taxes have been paid.