If an expatriate stays in Taiwan for over 183 days in a given fiscal year, the expatriate’s salary should be withheld according to the resident withholding tax rate.  The expatriate can choose either to withhold tax according to salary withholding tax table or to withhold 5% of the monthly salary, and file Withholding and Non-withholding Tax Statement before the end of January of the following year.

If an expatriate stays in Taiwan for less than 183 days in a given fiscal year, 1.5 times of the minimum wage approved by the Executive Yuan, which is NTD 28,170 in 2012, is used as the Standard Salary for calculating the withholding rate.  If the salary for the whole month is less than the Standard Salary, the withholding agent should withhold 6% of the salary payment. If the salary for the whole month is more than the Standard Salary, the withholding agent should withhold 18% of the salary payment.  In addition, the tax withheld should be deposited to the National Treasury within 10 days of withholding and Withholding Statement should be filed with the competent tax office.