On 2 March 2026, Taiwan’s Ministry of Finance amended the Regulations governing income tax reductions and exemptions for foreign special professionals, with effect from 1 January 2026. The amendments clarify the procedural requirements for claiming the preferential income tax regime available to qualifying Foreign Specialist Professionals and Employment Gold Card holders.
Eligible taxpayers must submit their tax incentive application within the prescribed statutory filing period. This means a departure tax return should be filed before the assignee leaves Taiwan, while an annual tax return should be filed by the end of the following May. Missing these filing requirements may result in loss of the preferential tax treatment, even if all substantive eligibility conditions are otherwise met.
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
Article 5 of the Regulations was amended on 2 March 2026 to provide greater legal certainty.
The introductory paragraph now expressly requires applications for the tax incentive to be submitted in the prescribed form and within the prescribed filing period in order to qualify for the income tax reduction.
The amendment formalizes the Ministry of Finance’s procedural requirements and clarifies the timing for applications under the preferential tax regime.
The amendment increases the importance of procedural compliance when claiming Taiwan’s Foreign Special Professionals tax incentive.
Eligible individuals should review their Taiwan departure plans and filing obligations carefully to ensure the relevant tax return and incentive application are lodged by the applicable statutory deadline.
Employers should review their mobility and tax compliance processes for foreign employees, especially those leaving Taiwan before the annual filing season, to help prevent unintended loss of the incentive.
Vialto Partners can help employers and eligible individuals assess eligibility for the preferential tax regime and complete the required filings within the statutory deadlines.
We can also advise on the practical impact of the amended Regulations for internationally mobile employees, Employment Gold Card holders and Foreign Special Professionals, including departure tax filings 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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