On March 2, 2026, Taiwan’s Ministry of Finance amended the regulations governing the reduction and exemption of income tax for foreign special professionals which came into effect on January 1, 2026. These amendments clarified the procedural requirements for claiming the preferential income tax regime available to qualifying foreign special professionals and Employment Gold Card holders.
The amendment expressly requires eligible taxpayers to submit their tax incentive application within the prescribed statutory filing period, which refers to that the departure tax return should be filed before the assignee’s departure and the annual tax return should be filed before the end of following May. Failure to comply with the applicable filing requirements may result in the loss of the preferential tax treatment, even where all substantive eligibility conditions are otherwise satisfied.
This alert summarizes the key changes and highlights the practical implications for eligible individuals and employers.
The principal amendments are outlined below.
Clarification of filing requirements
The amended regulations clarify that taxpayers seeking to claim the income tax incentive must submit the prescribed application together with their income tax return within the applicable statutory filing period.
For individuals leaving Taiwan before the annual tax filing season, this generally means completing the departure tax filing before leaving Taiwan. Individuals who remain in Taiwan through the annual filing season may instead claim the incentive by filing their annual individual income tax return within the statutory filing deadline.
Consequences of late filing
The amendment confirms that failure to complete either of the above filing procedures within the prescribed timeframe will result in the tax incentive not being available.
Accordingly, taxpayers who submit either the tax return or the tax incentive application after the statutory filing deadline may be denied the preferential tax treatment, regardless of whether they otherwise satisfy the substantive qualification requirements under the regulations.
Amendment to Article 5
To provide greater legal certainty, Article 5 of the regulations was amended on March 2, 2026.
The introductory paragraph now expressly provides that an application for the tax incentive must be made in the prescribed form and within the prescribed filing period in order to qualify for the income tax reduction.
This amendment codifies the Ministry of Finance’s procedural requirements and removes uncertainty regarding the timing of applications for the preferential tax regime.
The amendment places increased emphasis on procedural compliance when claiming Taiwan’s tax incentive for Foreign Special Professionals.
Eligible individuals should carefully consider their Taiwan departure plans and tax filing obligations to ensure that the appropriate tax return and incentive application are submitted within the applicable statutory deadline.
Employers should also review their mobility and tax compliance processes for foreign employees, particularly those who may depart Taiwan before the annual tax filing season, to reduce the risk of unintended loss of the tax incentive.
Vialto Partners can assist employers and eligible individuals in assessing their entitlement to the preferential tax regime and ensuring that the relevant filing obligations are completed within the prescribed statutory deadlines.
We can also advise on the practical implications of the amended regulations for internationally mobile employees, Employment Gold Card holders and Foreign Special Professionals, including departure tax filing requirements and annual income tax compliance.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Lucy Ho
Partner
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