Taichung Branch, National Taxation Bureau of the Central Area, Ministry of Finance, R.O.C., reminds foreign nationals: If you reside in Taiwan for over 90 days in a taxable year and receive service compensation from an overseas employer, you are still required to file individual income tax.

According to Article 8, Paragraph 3 of the Income Tax Act, remuneration received for services rendered in Taiwan, even if paid by an overseas employer, is considered Taiwan-sourced income and must be reported accordingly.

The branch explained that recently, some foreign nationals who were dispatched to Taiwan by their overseas employers (to conduct business activities, market research, technical or management services, etc.) mistakenly believed that since the income was paid by a foreign entity, it was not subject to income tax in Taiwan. However, Taiwan adopts the "place of service" principle. During their stay, foreign nationals benefit from Taiwan&rsquos public infrastructure and legal protection. Therefore, unless the stay in Taiwan does not exceed 90 days in a taxable year, tax obligations remain.

Foreign nationals residing in Taiwan for more than 90 days and receiving compensation for services performed locally must file their individual income tax at the tax office in their residential area. Failure to report or underreport may result in back taxes and penalties.

For inquiries, you may call the toll-free hotline: 0800-000321.

(Source: National Taxation Bureau of the Central Area, MOF)