Foreign Professionals Offered Tax Preferences

        On June 27 the Executive Yuan approved new Friendly Measures for Attracting Foreign Professionals to Work in Taiwan, proposed by the Council for Economic Planning and Development (CEPD), designed to make Taiwan more attractive to foreign professionals by streamlining withholding tax standards; expanding the scope of expense deductions for profit-seeking enterprises; relaxing rules for recruitment, residence, visiting relatives, and departure; and helping to alleviate problems of living and education faced by the dependents of foreign professionals working on the island.  

        Under the CEPD’s preliminary plan, tax preferences will not be applicable to persons holding dual nationality. In addition to foreign professionals covered in the Economic Ministry’s Program for the Expanded Recruitment of Overseas Science and Technology Personnel, Regulations Governing the Recruitment of Visiting Science and Technology Personnel with Subsidies from the National Science Council and Regulations Governing the Recruitment of Research Scholars with Subsidies from the National Science Council, and the Competitive Recruitment of Overseas Professionals subplan of the Economic Development Vision for 2015 – First-stage Three-year Sprint Plan’s Industrial Manpower Package Program, consideration will also be given to amending the Employment Services Act to add the 15 categories of professional and technical personnel listed in Paragraph 1, Subparagraph 1 of Article 46. The CEPD will solicit opinions from all sectors and then draw up a draft of the scope of applicability tax preferences, which will be implemented following approval by the Executive Yuan.

        The CEPD points out that the new Measures will offer both tax and non-tax incentives to attract foreign professionals to work and invest in Taiwan . Those who come to Taiwan for less than 183 days in a single year will benefit from a simplification of income-tax withholding rates, while those who stay for 183 days or more will be allowed to list round-trip travel expenses for the professional and his or her dependents, travel expenses home for regular vacations as provided in employment contracts, moving expenses, utilities costs, cleaning costs, telephone fees, rental costs, cost of repairing rented facilities, and scholarships for children as profit-seeking enterprise expenses so that these items will not be taxed as salary income.

        To resolve issues in regard to living in Taiwan that have been brought up by foreign chambers of commerce, the Executive Yuan will help the Taipei American School expand its premises and increase its student enrollment so as to provide abundant opportunity for the children of foreigners in Taiwan to receive English-language schooling. It will lower the land rental fee for the Taipei European School to0.4% of announced value, comparable to the rate charged the Taipei American School . It will revise the Regulations Governing Entry Permission to Taiwan Area for the People from Mainland China to provide for the issuance of multiple entry-exit permits to the mainland Chinese spouses of foreign professionals working in Taiwan , and will open up Taiwan visits by the parents of the mainland spouses. In addition, the period of departure from Taiwan may be relaxed for foreign professionals whose period of residence in Taiwan has expired.

Back to News Page