Taiwan Mulls Reduced Tax Rate For Expatriates

By ExpatBriefing.com Editorial 20 April, 2012

It is likely that the government will propose measures to attract foreign professionals and other white-collar managers to Taiwan, on the instigation of the Taiwanese Premier Sean Chen.

In particular, Chen is concerned that Taiwan’s 40% top income tax bracket is too high, particularly in comparison to Singapore and Hong Kong where income tax is 20% and 15%, respectively, and expatriates are thereby being discouraged from considering Taiwanese posts.

It is therefore expected that the Ministry of Finance will study the feasibility of cutting the personal income tax rate to, perhaps, 20%, the same as Singapore, for the ‘quality’ expatriates Taiwan needs to work in selected priority sectors.

Chen is also asking that the regulations which require at least two years’ work experience, and which impose a minimum wage on foreign professionals working in Taiwan should be relaxed, so that graduates who wanted to take up an initial position in Taiwan could be exempted, at least for the first year of their employment.

Tags: Individuals | Expatriates | Tax | Law | Taiwan | Professionals | Tax Rates | Individual Income Tax |

 





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