Income tax on rent, worked example, in Taiwan

August 08, 2016

Non-resident coupleĀ“s rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
= Taxable Income 18,000 72,000 144,000
Income Tax3
Flat Rate 20% 3,600 14,400 28,800
Annual Income Tax Due 3,600 14,400 28,800
Other Taxes3
VAT4 5% 900 3,600 7,200
Annual Income Tax Due US$3,600 US$14,400 US$28,800
Tax Due as % of Gross Income 20% 20% 20%
Source:
Global Property Guide

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 32.00 TWD

3 Gross rental income earned by nonresidents is taxed at a flat rate of 20%.

4 Gross rental income is also subject to Value Added Tax (VAT), levied at a flat rate of 5%. Business Turnover Tax of 1% may be charged for small scale enterprises in lieu of VAT if rent is paid directly to an individual, not a company.

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