Tw Corporate Income Tax

---
name: tw-corporate-income-tax
description: "Source-cited draft: corporate income tax for Taiwan (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/tw-corporate-income-tax"
  jurisdiction: "TW"
  tax_year: "2025"
  last_updated: "2026-07-13"
---

# Taiwan Corporate Income Tax

## Rates and tax base

- **Overview of resident/non-resident taxation** — Profit-seeking enterprises resident in Taiwan are taxed on worldwide income at a flat 20%; non-resident enterprises are taxed on Taiwan-source income, largely by withholding. A small-profits exemption and an undistributed-earnings surtax also apply.
- **Profit-seeking enterprise income tax rate** — 20 percent  _(Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/taxes-on-corporate-income))_
- **Small-profit threshold** — Enterprises with annual taxable income of TWD 120,000 or less are exempt; a tapering cap limits tax just above this threshold TWD  _(Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/taxes-on-corporate-income))_
- **Tax base** — Resident enterprises: worldwide net income (with foreign tax credit). Non-resident enterprises: Taiwan-source income only  _(Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/income-determination))_
- **Surtax on undistributed earnings** — Additional 5% on current-year earnings not distributed by the end of the following year (does not apply to Taiwan branches of foreign companies) percent  _(Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/taxes-on-corporate-income))_
- **Corporate Income Basic Tax (AMT)** — 12% standard rate (a 15% rate is proposed for in-scope MNE groups under the OECD global minimum tax from 2025 — confirm) (approx — confirm 15% MNE rate status) percent  _(Income Basic Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/taxes-on-corporate-income))_

## Withholding tax on outbound payments

- **Overview of withholding on outbound payments** — Payments to non-resident enterprises are generally subject to final withholding at the rates below; tax treaties (Taiwan has roughly 35 in force) commonly reduce them.
- **Dividends to non-residents** — 21% (treaty rates often 5%–15%) percent  _(Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/withholding-taxes))_
- **Interest to non-residents** — 15% on qualifying bond/financial-instrument interest; 20% otherwise (treaty rates often 0%–15%) percent  _(Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/withholding-taxes))_
- **Royalties to non-residents** — 20% (may be exempt for approved IP rights; treaty rates often 3%–15%) percent  _(Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/withholding-taxes))_
- **Interest/royalties to residents** — 10% withholding (creditable against final liability) percent  _(Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/withholding-taxes))_

## Filing and payment

- **Overview of filing and payment** — Enterprises self-assess annually and make an interim (provisional) payment mid-year.
- **Annual return deadline** — By 31 May following the fiscal year-end (or the last day of the fifth month after a non-calendar year-end)  _(Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/tax-administration))_
- **Provisional (interim) tax payment** — Generally 50% of the prior year's tax, payable in the ninth month of the fiscal year (by end of September for calendar-year taxpayers) (approx — confirm exact window)  _(Income Tax Act (https://taxsummaries.pwc.com/taiwan/corporate/tax-administration))_

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `tw-corporate-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/tw-corporate-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.