Taiwan Withholding Tax Calculator for Payments to Non-Residents
Works out the Taiwan withholding tax (扣繳) a resident company must deduct when it pays a non-resident: 21% on dividends, 20% on royalties and service fees, 20% on interest (15% on bonds and short-term bills), or 3% on technical service fees approved for the 15% deemed-profit method. If a tax treaty applies, enter the treaty rate. Rates as reviewed in August 2026.
Taiwan withholding tax is the income tax a Taiwan payer deducts at source when it pays Taiwan-source income to a non-resident. The rates are set by the Standards of Withholding Rates for Various Incomes (各類所得扣繳率標準): 21% on dividends, 20% on royalties, 20% on most interest and commonly 20% on service fees paid to foreign entities.
Taiwan Withholding Tax Rates for Non-Residents
| Payment | Rate without a treaty | Notes |
|---|---|---|
| Dividends | 21% | Treaties reduce this to 5% to 15% |
| Interest | 20% | 15% on bonds, short-term bills, certificates and related repurchase transactions |
| Royalties | 20% | Exempt for certain IP rights if approved in advance by the competent authority |
| Service fees | 20% | 3% net for technical services using the 15% deemed-profit rate |
Worked Example
A Taiwan company pays a NT$500,000 dividend to a foreign shareholder with no treaty: 21% is withheld, NT$105,000, and NT$395,000 is paid out. If the shareholder is resident in a treaty partner whose dividend rate is 10%, enter 10 in the treaty field: the withholding falls to NT$50,000, a saving of NT$55,000. A NT$500,000 technical service fee approved for the deemed-profit method carries 3%, NT$15,000, instead of NT$100,000 at 20%.
Treaty Rates for Selected Countries
Taiwan has comprehensive income tax agreements with more than 30 territories. There is no comprehensive income tax agreement with the United States; the agreement with the United States covers international transportation income only, so the statutory rates apply to US recipients.
| Treaty partner | Dividends | Interest | Royalties |
|---|---|---|---|
| Japan | 10% | 10% | 10% |
| Singapore | 10% | 10% | 10% |
| South Korea | 10% | 10% | 10% |
| United Kingdom | 10% or 15% | 10% | 10% |
| Germany | 10% or 15% | 10% or 15% | 10% |
| Netherlands | 10% | 10% | 10% |
| Australia | 10% or 15% | 10% | 12.5% |
| Canada | 10% or 15% | 10% | 10% |
| India | 12.5% | 10% | 10% |
Where two rates are shown, the lower one depends on a shareholding or recipient condition in that treaty; read the agreement before choosing.
Service Fees Paid Abroad
Resident corporations paying service fees to foreign entities are often subject to 20% withholding. It can be lower: the tax on service income may be reduced by deducting costs and expenses and applying a contribution ratio, and technical services income can use a deemed profit rate of 15%, which brings the net rate to 3%. A recipient resident in a treaty country can also check whether the income qualifies as business profits exempt under the treaty.
Source and Disclaimer
This is a simple gross-to-net calculation. It does not decide whether income is Taiwan-source, whether a treaty applies or whether an approval has been granted. Confirm with the National Taxation Bureau or an adviser before paying.
Source: PwC Worldwide Tax Summaries — Taiwan, Corporate withholding taxes (last reviewed 20 August 2026). Treaty texts are published by the Ministry of Finance, Taiwan. Last updated: October 2026.