Taiwan Payroll Compliance Map

Compliance Map includes Taiwan Payroll Withholding, Taiwan Social Welfare for Employees.

E-mail: tpe4ww@evershinecpa.com
or
Contact us during office hours  (Taipei and China Time Zone)
Director Jerry Chu, USA Graduate School Alumni and a well-English speaker
Mobile: +886-939-357-735
Tel No.: +886-2-2717-0515 ext. 103

WWT – Taiwan Payroll Income Tax Deduction

WWT-TW-01 WWT Tax Entity

Question from client:
Is the Taiwan salary income tax levied in national or locals? Or both national and locals?

Are the national and local personal income tax that levied separately? Or levied together?
What is the standard withholding tax rate?

Answer from Evershine RD:
Income Taxes are levied at national level, administered by the Taxation Administration, a subordinate agency to the Ministry of Finance.
Employers may choose to either withhold the appropriate income tax according to the Ministry of Finance Salary Income Tax Table (Year 2022, for salary NTD 86,001 and above) or may withhold a flat rate of 5%.
Income from commissions should be withheld at a flat rate of 10%.

WWT-TW-02 Registration

Question from client:
The Taiwan salary income tax collection is under the jurisdiction of which government unit?

The registration of the Taiwan salary income tax collection status, that is, the application procedure for the employer withholding certificate number, paper certificate number application, or online account application? Website? Employer withholding certificate?
What is the advance certificate number of the number?
Do you need to use the industrial and commercial certificate e-card to apply?

Answer from Evershine RD:
The Ministry of Finance (MOF) authorizes the national tax bureau to administer income tax in Taiwan.
Taiwan has what it calls a one-stop-shop for all registration procedures to establish an employer in Taiwan.
Upon hiring new employees, employers must submit copies of the front and back pages of the national identification cards for the new hires along with copies of their company registration, and other industry specific certificates.
Employer payroll tax number is the same as corporate tax number.

WWT-TW-03 WWT Order (OD)

Question from client:
What is the order of Taiwan salary income tax withholding declaration (information flow determines tax base) and payment (fund flow)?

Pay first and then declare? Report first and then pays?
At the same time as the declaration and payment?

Answer from Evershine RD:

Deposit First (DF): Make monthly payments then file the required forms.

WWT-TW-04 Mechanism of Filing (MOF)

Question from client:
Taiwan’ salary income tax withholding declaration (information flow determines the tax base)

What is the method of account return?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist?
If electronic filing is possible: Web site URL?

Answer from Evershine RD:
Employers must remit taxes along with a payment slip to the National Treasury within the first 10 days of the month following that in which salary was paid.
Additionally, employers must file annual returns with the tax collection authority and issue all employees withholding certificates detailing the amounts withheld and remitted over the year by the last day of January of each year.
For online reporting software download and installation, visit https://tax.nat.gov.tw/alltax.html?id=3

WWT-TW-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for the Taiwan salary income tax withholding payment (funding flow)?

Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:
Employers must remit taxes along with a payment slip to the National Treasury within the first 10 days of the month following that in which salary was paid.
Submit the Salary Income Withholding Tax Payment Form-151 at  https://www.etax.nat.gov.tw/etwmain/etw144w/151 to obtain the barcode and then proceed to make payment.
Payment method:

  1. Please go to the financial institution that collects the tax on behalf of the payment (the post office does not collect it).
  2. For cases with a tax amount of less than NTD 30,000, payment can be made at convenience stores such as 7-Eleven, Family Mart, Hilife, and OK Mart (not applicable to automatic withholding cases), and the payment deadline is open until the 3rd day after the payment deadline.

BNF – Deduction of Employee Social Welfare

BNF-TW-01 BNF Entity

Question from client:
Taiwan’s social insurance, medical insurance, pensions, and other employee social welfare levy, is it national? Is it locals? Or is there a national plus local? If there is a national and locals, are they levied separately?

Or levied together? What is the withholding tax rate?

Answer from Evershine RD:
The social security insurance is imposed at national level.
2022 Social security insurance rates:

No. Social Security Insurance Employee Employer
1 National Labor Insurance 2.1% 7.35%
2 Unemployment Insurance 0.2% 0.7%
Total: 2.3% 8.05%
3 National Health Insurance 1.551% 3.102% (Supplementary Premium +2.11%)
4 Labor Pension Scheme 6%

All workers over the age of 15 and under the age of 65 who are employed by their own nationality workers or their foreign spouses or mainland spouses, who work in Taiwan according to law, should participate in employment insurance in the employer as an insured.
Labor insurance premiums and employment insurance premiums shall be calculated and collected at the same time for workers who should participate in labor insurance and employment insurance.

Workers who are not covered by employment insurance, such as employers, foreign migrant workers (excluding foreign spouses and mainland spouses), workers over the age of 65, workers under the age of 15, and workers assisted by various public laws, have participated in labor insurance, and only receive labor insurance fee.

Employers of employed workers or their affiliated organizations employ less than 5 employees, or their industry attributes are not subject to compulsory labor insurance coverage and have not participated in labor insurance.
Those who only participate in employment insurance will only be charged for employment insurance premiums.
The National Health Insurance Program is Taiwan’s universal health care system that provides Taiwanese residents with health care coverage.

BNF-TW-02 Registration

Question from client:
Social Security Certificate Number? What is the name of the government agency in charge of social insurance?

Medical insurance certificate number? What is the name of the government agency in charge of medical insurance?
Pension certificate number? The name of the government agency in charge of pensions?
How to apply for the social welfare certificate number for employees in the country?
Paper certificate number application? Or online account application? Website?
Do I need to use the industrial and commercial certificate electronic card to apply?
Are the above three certificate numbers unified or separate?

Answer from Evershine RD:

No. Social Security Insurance Government Agency Government website for application
1 National Labor Insurance Bureau of Labor Insurance https://edesk.bli.gov.tw/cpa/MEIndex_nologin.jsp
2 Unemployment Insurance Bureau of Labor Insurance https://edesk.bli.gov.tw/cpa/MEIndex_nologin.jsp
3 National Health Insurance Health Insurance Bureau https://eservice.nhi.gov.tw/nhiweb1/system/mLoginCa.aspx
4 Labor Pension Scheme Bureau of Labor Insurance https://edesk.bli.gov.tw/cpa/MEIndex_nologin.jsp

Upon hiring new employees, employers must submit copies of the front and back pages of the national identification cards for the new hires along with copies of their company registration, and other industry specific certificates.
Alternatively, employers may use Taiwan’s Company, Business and Limited Partnership One-Stop Service Request portal at https://onestop.nat.gov.tw/oss/identity/Identity/init.do to complete their registration.
Within seven days of hiring or terminating an employee, employers must prepare a list of workers covered by labor pension and submit it to the Bureau of Labor Insurance.

Employers must register with the National Health Insurance Administration within three days of hiring employees who must be covered by the National Health Insurance Program. Employers must file a Group Insurance Application Establishment Report Form, a Beneficiary Coverage Application Form, a copy of the employers’ identification cards and company specific certificates.
Alternatively, Taiwan has a one-stop shop for all registration procedures to establish an employer in Taiwan.
Employers must file an Insurance Coverage Application Form with the National Health Insurance Administration within three days of hiring new employees.

BNF-TW-03 BNF Order (OD)

Question from client:
What is the order of the withholding declaration of social welfare for Taiwan employees (information flow determines the tax base) and payment (fund flow)?

Pay first and then declare? Report first and then pays?
At the same time as the declaration and payment?

Answer from Evershine RD:
Same Period: Report and pay at the same time.

BNF-TW-04 Mechanism of Filing (MOF)

Question from client:
What is the method of reporting for withholding of social benefits for Taiwan employees (information flow determines the tax base)? Reporting cycle: every month? Every bimonthly? Every season? Every half year? Per year?

Electronic filing? Manual filing? Electronic filing and manual filing coexist?
If electronic filing is possible: Web site URL?

Answer from Evershine RD:
Filing website at https://edesk.bli.gov.tw/cpa/.
Employers must submit wage books along with all labor and employment insurance contributions by the end of the month following the month in which wages were paid and withheld for labor insurance and employment insurance premiums.
Employers must notify the Bureau of Labor Insurance by the end of August of any changes in their employees’ wages made between February and July of the same year.
Employers must notify the Bureau of Labor Insurance by the end of February for changes in their employees’ wages between August and January.

For the payment of pension premiums, the Bureau of Labor Insurance mails employers a payment statement by the 25th of every month following the month in which salaries were paid.
By the end of the next following month, employees must submit their payments, along with the payments withheld from employees to the Bureau of Labor Insurance.
Employers must provide their employees with a written statement with the number of contributions made and deposited into their pension funds.

The National Health Insurance Administration will send employers premium calculation sheets by the end of every month for the month following the month in which salary was paid and withheld.
Employers must pay their premiums according to the sheets directly to the National Health Insurance Administration by the end of the month following the month during which salary was paid and withheld.

BNF-TW-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for Taiwan employee social welfare withholding contributions (funds flow)?

Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:

National Labor Insurance and Unemployment Insurance:
Online payment of labor insurance premiums

  1. “Internet Banking” and “Internet ATM” enter the three-segment barcode or transfer money to pay the insurance premium
  2. Provide “National Payment Network” to pay insurance premiums and download operation manuals
  3. Provide “Mobile Payment” payment service and download operation manual.

Labor Pension Scheme
Online Payment of Workers’ Pensions

  1. Financial institutions that provide “Internet Banking” payment services for workers’ pensions (click the bank name to link to each bank’s website)
  2. Financial institutions that provide “Internet ATM” payment services for workers’ pensions (computers must be equipped with card readers)

(Click on the name of the financial institution to link to the website of each financial institution)

  1. Provide “National Bill Payment Network” to pay labor pension, follow the instructions on the operation screen to pay with the payment slip to your bank current deposit account or use a chip financial card to pay. A fee of 3 yuan is required for each transaction.
  2. Provide “Mobile Payment” to pay labor pension, download “Taiwan Pay APP”, bind the financial card, click “Scan Code Payment” to scan the QR Code on the payment slip, then select the financial card, enter the password, then after completing the payment, a handling fee of 3 yuan is required for each transaction.

National Health Insurance

Employers can make payments to the National Health Insurance Administration online on Taiwan’s banking site, through a transfer payment, at an approved financial bank or through an ATM payment.

**請注意下列事項:
以上內容為永輝研發及教育中心於2021年10月摘要。
隨著時間的推移,法規可能會發生變化,不同情況下會採用不同的選擇。
所以在選擇選項之前,請與我們聯系或諮詢該領域您信任的專業人士。

Contact us:
E-mail: tpe4ww@evershinecpa.com
or
Contact us during office hours  (Taipei and China Time Zone)
Director Jerry Chu, USA Graduate School Alumni and a well-English speaker
Mobile: +886-939-357-735
Tel No.: +886-2-2717-0515 ext. 103

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(version: 2022/03)

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