Q1: How are the days of residence in Taiwan for foreigners calculated?
A: Days of residence are determined based on passport entry/exit stamps or the &ldquoEntry and Exit Date Certificate&rdquo issued by the National Immigration Agency. (The first day is excluded, and the last day is included.) For multiple entries and exits in one tax year, the days are added cumulatively.
Q2: How should a taxpayer with dual nationality declare individual income tax?
A: A person with dual nationality must be classified as either a "resident individual" or a "non-resident individual" by the Income Tax Act. Income tax shall be declared and paid based on this classification. Regardless of whether income is earned under foreign or ROC nationality, it must be declared together.
Q3: Why must service compensation from a foreign employer be declared during a foreigner&rsquos stay in Taiwan?
A: If a foreigner resides in Taiwan for more than 90 days in a tax year and engages in business activities such as sales, market research, procurement, inspection, or technical services, they are using public infrastructure and enjoying protection from the ROC government, which gives rise to tax obligations. International tax principles also require income to be taxed in the country where services are performed.
After downloading and installing the &ldquoMobile Citizen Digital Certificate APP&rdquo on your mobile device, you can apply for and check the &ldquoEntry and Exit Date Certificate&rdquo online. (Image / Source: Taichung City North District Household Registration Office website)
Q4: How should service compensation from a foreign employer be declared?
A: Service compensation earned from overseas employers while providing services in Taiwan must be declared. Foreigners should submit verification documents from a local tax authority, a certified accountant (with a license copy), or a notary to the local tax office for assessment.
Q5: How should service compensation in foreign currency be converted into NTD?
A: It should be converted using the average exchange rate of the respective foreign currency to NTD for the tax year. For 2024 (Tax Year 113), the rates are:
USD: 32.1158, JPY: 0.2100, AUD: 21.0575, CAD: 23.3400, EUR: 34.5225, HKD: 4.0927, KRW: 0.0235, GBP: 41.4416, SGD: 23.9733, NZD: 19.3200
Q6: If a foreigner is employed locally and not dispatched from abroad, what documents must be submitted?
A: If hired by a local entity and not receiving foreign income, the foreigner should submit: a tax withholding statement verified by the tax authority, an employment contract with the local organization, resignation proof from the previous job, or other documents proving local employment status.
