- Salary and wages income is one kind of remunerations which means income derived in respect of employment exercised or work performed, including salaries, remunerations, wages, allowances, annuities, endowments, bonuses and/or any other similar subsidies or compensations. Only for non-R.O.C. residents staying in the R.O.C. for not above 90 days within a taxable year, whose remunerations received from foreign employers will not be deemed as R.O.C. source salary/wages income.
- From 2019, each person receiving salaries and wages may claim a special deduction for salary and wages income up to a maximum of NT$200,000 or the necessary expenses directly related to performing duties or doing work and borne by the recipient to be deducted from his/her salaries and wages in accordance to Subparagraph 1, Category 3, Paragraph 1 of Article 14 of the Income Tax Act. For filing the necessary expenses deducted from salaries and wages, please submit the “Application for Necessary Expenses Deducted from Salaries and Wages” and other supporting documents when declaring.
Special deduction for salary and wages income shall not apply to the income from salary and wages income calculated in accordance with necessary expenses deducted from salaries and wages when calculating the tax payable in accordance with Article 15 and calculating the net consolidated income in accordance with Article 17 of the Income Tax Act.
- From 2018, if a foreign special professional meets certain requirements, referring to Article 9 of the Act for the Recruitment and Employment of Foreign Professionals and Regulations Governing Reduction and Exemption of Income Tax of Foreign Special Professionals, during the first three years starting from the year when he or she for the first time has resided in the R.O.C. for a full 183 days of the year and has had an annual salary income of over NT$ 3 million, one half of the amount of the salary income exceeding NT$ 3 million of each such year may be excluded from the gross income. Overseas income is excluded from the income basic tax. Please submit the “Application for Exemption from Income Tax for Foreign Special Professionals” and other supporting documents when declaring.