17 April, 2018
The Ministry of Finance promulgated the “Regulations Governing the Reduction and Exemption of Income Tax of Foreign Special Professionals”, which provides tax benefits in favor of foreign special professionals.
To attract foreign special professionals to come to Taiwan, the MOF promulgated the “Regulations Governing the Reduction and Exemption of Income Tax of Foreign Special Professionals” (the “Regulations”) on January 30, 2018.
The Regulations provides that during the three year period beginning the tax year in which a foreign special professional resides in Taiwan for a full 183 days and earns an annual salary of more than three million dollars for the first time, half of the portion of his/her salary exceeding three million dollars may be excluded from his/her gross income for purpose of calculating income tax liability in each qualified tax year.
According to the Regulations, if a foreign special professional has not resided in Taiwan for a period of 183 days or has not earned an annual salary of more than three million dollars, the beginning of the three year period where the aforementioned tax benefit may be applicable can be deferred to the year in which he/she first meets said threshold.
The maximum number of tax years that a foreign special professional may enjoy the aforementioned tax benefit shall be three years.
The standards of definding “foreign special professionals” will be determined and published by the competent authorities of various industries respectively.
For further information, please contact:
Elvin Peng,Tsar & Tsai Law Firm
law@tsartsai.com.tw
