National Taxation Bureau of the Southern Area, Ministry of Finance stated that, for the purpose of accelerating the internationalization of the economy of the Republic of China (hereinafter called “R.O.C.”) and encouraging foreign professionals to work within the territory of R.O.C., payments made in accordance with the content of an employment contract by an enterprise which hires foreign professionals may be claimed as expenses, such as the round trip air fare of the foreign professional and his/her family, home leave vacation pay according to the contract, home moving expenses, utility bills, cleaning bills, telephone bills, house rentals, repair costs for place of residence and educational scholarships for children. The above mentioned items may be excluded from the taxable income of the foreign professionals.
The Bureau further expressed that prior to employing foreign professionals specified in "The Scope of Application for Tax Preferences Provided to Foreign Professionals", the enterprise shall apply for employment permits issued by the Workforce Development Agency, Ministry of Labor in accordance with the Articles 46 and 48 of the Employment Services Act. Moreover, the aforesaid foreign professionals are required to stay within the territory of the R.O.C. for 183 days or more in a taxable year and their yearly taxable salaries, whether paid by the employers within the territory of the R.O.C. or not, must be NT$1,200,000 or more. If the foreign professionals stay less than one year in the R.O.C., their yearly taxable salaries shall be converted proportionately on an annual basis must be NT$1,200,000 or more. However, the yearly taxable salaries of those employed for special needs and approved as a special case by the Ministry of Finance are not limited to be NT$1,200,000 or more.
For detailed information on the tax preferences for foreign professionals, please call our toll-free number: 0800-000321. The Bureau will sincerely provide comprehensive advice services.
Press release contact person: Ms. Liu