Looking to hire in Taiwan

Taiwan provides statutory paid annual leave that increases with seniority, as well as a separate sick leave entitlement. Employers should track service length carefully, as vacation days rise in multiple steps over an employee’s tenure.

Paid annual leave is linked to each employee’s work anniversary and is released on a pro‑rata basis over the leave year. Unused days cannot be carried over to the next year, so employees should be encouraged to take their entitlement within the relevant period.

Employees are entitled to 30 days of sick leave per calendar year. Sick leave does not carry over between years. A medical certificate is not mandated by statute for this entitlement, though employers may still set reasonable internal procedures for requesting sick leave.

In Taiwan, employees must submit, and clients must approve, expense claims in the same calendar year the costs are incurred. Prior year expenses are not accepted for reimbursement.

All expenses must be reviewed and approved by the employee’s manager. If an expense is submitted without the required documentation, it will be treated as taxable income. For business travel, employees may need to complete a Business Trip Expense Form, especially for international and some domestic trips, and attach invoices and receipts, flight tickets, and supporting documents that show the places visited each day and the participants. When using Expensify, the Business Trip Expense Form must be submitted as a 0.01 expense. For business travel expenses incurred within Taiwan, the employer’s information must appear on all tax invoices.

Phone, internet, and coworking costs can be reimbursed when they are business-related and properly documented. For expenses incurred in Taiwan, tax invoices must show the employer’s company ID. For overseas travel, a Business Trip Expense Form must accompany the tax invoice or receipt.

Laptops, office equipment, supplies, software, and postal charges are reimbursable when supported by tax invoices or receipts, and, for domestic expenses, the employer’s company ID. For overseas travel, a Business Trip Expense Form is required, and some items may be treated differently for tax if incurred abroad.

Business travel costs such as insurance, visas, accommodation, transport, and related items are generally non taxable when properly documented. For many items, a Business Trip Expense Form and, where applicable, a travel report from Expensify or similar software are required. Some expenses must also show the employee’s name or the employer’s company ID.

Meal and entertainment costs, including daily meals, groceries, and client or partner meals, can be reimbursed on a non-taxable basis when they are business-related and supported by appropriate documentation. For expenses in Taiwan, tax invoices must include the employer’s company ID.

Training, courses, books, promotional items, and certain gifts may also be reimbursed. Tax treatment depends on whether the benefit is for employees or clients and whether it falls within government limits.

Mileage reimbursement for personal vehicle use in Taiwan is usually treated as a taxable benefit. It is more common to reimburse actual fuel costs as a non-taxable business expense, provided there is a fuel receipt that includes the employer’s company ID and the total mileage claim does not exceed the value of the fuel receipt.

Employees must complete a Business Trip Expense Form for all expenses incurred during international and domestic business travel, including per diems. For business travel within Taiwan, the employer’s information must appear on all tax invoices. Employers may provide a per diem to cover accommodation, transportation, and other miscellaneous business travel expenses.

Bonuses in Taiwan include contractual and discretionary payments such as incentives and commissions, and they are taxed as regular income, including any applicable social security contributions. Taiwan applies progressive tax rates and withholds tax at source, so withholding rates may be higher in pay periods that include bonus payments.

Taiwan’s Ministry of Labor offers an employer childcare-allowance subsidy program that provides TWD 10,000 per employee per year from 1 May 2026. Employer participation is optional, and the government reimburses 50–70% of the employer’s cost depending on company size. Eligibility is generally tied to having a child up to age 6, and employers must opt in to the program and follow the Ministry of Labor’s current submission requirements.

Beyond childcare, employers in Taiwan frequently use allowances to stay competitive, especially for meals and various discretionary perks. These must be written into the employment offer or an amendment to the employment agreement and are typically processed manually by the employer.