An alien is taxed on salaries, bonuses, and commissions earned for work performed in Taiwan, regardless of where payment is made. Fringe benefits provided to a foreign employee in the form of cash allowances via payroll are taxable regardless of the nature of the benefits. Fringe benefits provided directly by the employer without cash payment to the employee are also taxable unless the foreign employee qualifies for special tax incentives and specific arrangements are made.
However, there is one exception. If an assignee stays in Taiwan for 90 days or less in a calendar year, the assignee’s income received from an employer outside of the territory of Taiwan can be exempted from Taiwan income tax assessment.
Taiwan does not impose a separate capital gains tax (CGT), as all gains, unless specifically exempted by law, or as otherwise regulated, are assessed as ordinary income and subject to regular income tax assessment. CGT on securities has been abolished effective from 1 January 2016. Please note that capital gains derived from sales of Taiwan-based securities prior to 1 January 2016 are still subject to CGT if certain conditions are met.