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Phone, internet, and coworking costs can be reimbursed when used for business. For expenses incurred in Taiwan, tax invoices must include the employer’s company ID, and overseas business travel may require a Business Trip Expense Form.
Employment in Taiwan
Minimum wage
TWD 343,080
Employer costs
17.85%
Employee contribution
4.05%
Employee tax
5–40%
In Taiwan, the statutory minimum wage is TWD 343080 per year. Employers typically budget for social security contributions of around 17.85% on top of gross salary, covering health, labor, and pension insurance. Employees contribute around 4.05% of their pay toward these same schemes. Personal income tax is progressive, with headline rates ranging from 5–40%.
Onboarding time
We can help you get a new employee started in Taiwan fast. The minimum onboarding time we need is only 48 hours. Our team ensures fast, compliant employee onboarding and payroll processing. The onboarding timeline starts once the employee submits all required information via the NEO platform.
Payroll
Payroll in Taiwan includes employer and employee contributions to health insurance, labor insurance, and pension insurance. The figures below reflect typical overall contribution levels but individual components may be subject to caps and specific rules.
Typical employer social contributions
17.85% of payroll
Typical employee social contributions
4.05% of salary
Minimum wages
Statutory minimum wage (annual)
TWD 343080
Working hours
Standard working time in Taiwan is based on a five-day workweek. Employers typically schedule work from Monday to Friday within a weekly hours cap.
Standard working hours
40 hours per week, Monday to Friday
Leave
Taiwan’s leave framework in this summary focuses on sick leave; other statutory leave types are not detailed here. Employers should ensure internal policies at least meet these minimums and clarify any additional paid time off they choose to offer.
Paid sick leave entitlement
30 days per year, not carried over
Public holidays
Taiwan observes a mix of national, historical, and cultural public holidays. The list below shows the key public holidays for 2026 that employers should plan for in their workforce calendars.
Public holidays 2026
| Date | Holiday |
|---|---|
| 2026-01-01 | Founding Day of the Republic of China |
| 2026-02-17 | Chinese New Year |
| 2026-02-18 | Chinese New Year |
| 2026-02-19 | Chinese New Year |
| 2026-02-20 | Chinese New Year's Eve |
| 2026-02-20 | Chinese New Year's Eve |
| 2026-02-27 | Peace Memorial Day |
| 2026-04-03 | Children's Day |
| 2026-04-06 | Tomb-Sweeping Day |
| 2026-05-01 | Labor Day |
| 2026-06-19 | Dragon Boat Festival |
| 2026-09-25 | Mid-Autumn Festival |
| 2026-09-28 | Confucius' Birthday |
| 2026-10-09 | National Day |
| 2026-10-25 | Taiwan Restoration and Guningtou Victory Memorial Day |
| 2026-12-25 | Constitution Day |
Expenses
Expense claims in Taiwan must be submitted and approved in the same calendar year they are incurred; prior-year expenses are not accepted. All expenses must be reviewed and approved by the employee’s manager, and missing documentation can cause the reimbursement to be treated as taxable income.
Submission deadlines
| Expense Type | Action Required and Deadline |
|---|---|
| Current Year's Expenses | Submit and approve within the same calendar year |
| Prior Year's Expenses | Not accepted; must be submitted and approved in the year incurred |
Communication and workspace
| Expense | Taxation |
|---|---|
| Phone Subscription | Non taxable for business trip; non-business trip related reclassified as allowance and taxed |
| Internet Subscription | Non taxable for business trip; non-business trip related reclassified as allowance and taxed |
| Coworking | Non taxable |
Equipment and supplies
Laptops, office equipment, office supplies, software, and postal charges can be reimbursed when properly documented. For domestic purchases, invoices should carry the employer’s company ID; some overseas purchases may instead be treated as taxable allowances.
| Expense | Taxation |
|---|---|
| Laptop or Office Equipment | Non taxable if incurred domestically; if incurred abroad, reclassified as allowance and taxed |
| Office Supplies | Non taxable |
| Software Subscription | Non taxable |
| Postal Charges | Non taxable |
Travel
Business travel expenses generally require a Business Trip Expense Form, along with invoices, receipts, tickets, and, where relevant, travel reports. For travel within Taiwan, tax invoices must include the employer’s information to keep reimbursements non taxable.
| Expense | Taxation |
|---|---|
| Business Travel Insurance | Non taxable |
| Visa Fee | Non taxable |
| Accommodation | Non taxable |
| Flight (including luggage) | Non taxable |
| Taxi or rideshare | Non taxable |
| Train | Non taxable |
| Public transport | Non taxable |
| Car rental | Non taxable |
| Fuel | Non taxable |
| Parking or Toll fees | Non taxable |
Meals and entertainment
Meals, groceries, and client entertainment can be reimbursed as non taxable business expenses when supported by appropriate tax invoices or receipts. For expenses in Taiwan, invoices must show the employer’s company ID to maintain non taxable treatment.
| Expense | Taxation |
|---|---|
| Breakfast, lunch and dinner | Non taxable |
| Groceries | Non taxable |
| Meal with client or partner | Non taxable |
Other expenses
Training, courses, books, and promotional items are generally treated as non taxable when properly documented. Gifts to employees are treated differently from gifts to clients and may be reclassified as taxable allowances.
| Expense | Taxation |
|---|---|
| Training, Courses, and Books | Non taxable |
| Promotional Items | Non taxable |
| Gifts to employee | Taxable; reclassified as allowance |
| Gifts to client | Non taxable up to government-defined limits |
Mileage
Mileage reimbursement for personal vehicle use in Taiwan is usually treated as a taxable benefit, so employers more commonly reimburse actual fuel costs as a non taxable business expense. To keep fuel reimbursements non taxable, the fuel receipt must include the employer’s company ID and the total mileage claimed cannot exceed the value shown on the receipt.
Business travel per diem
Employees must complete a Business Trip Expense Form for all expenses incurred during international and domestic business travel, including per diems, and domestic invoices must include the employer’s information. Employers may provide per diems to cover accommodation, transportation, and other incidental travel costs, with specific domestic rates by job position and variable rates for international travel.
Domestic per diem rates
| Job Position | Per Diem Rate |
|---|---|
| Chairman, general manager, manager, and factory director of a profit-making enterprise | NT$ 700 |
| Other employees | NT$ 600 |
Bonuses
Bonuses in Taiwan include contractual and discretionary payments such as incentives and commissions, and they are taxed as regular income with applicable social security contributions. Taiwan uses progressive tax rates and withholds tax at source, so withholding may be higher in pay periods that include bonus payments.
Allowances
In Taiwan, employers can offer a mix of mandatory and discretionary allowances, ranging from childcare and meals to transportation, housing, and wellness-related benefits. Many discretionary allowances must be written into the employment offer or an amendment to the employment agreement, and most are treated as taxable income unless specifically noted as non taxable.
Key allowances
| Type | Status | Taxation | Limitations |
|---|---|---|---|
| Childcare allowance | Mandatory for eligible employees | Taxable | TWD 10,000 per employee per year; must be paid in October to eligible employees with children up to age 6; employees must submit updated Household Registration Book between September 1 and September 31 |
| Meal allowance | Common | Non-taxable up to TWD 3,000 per month | TWD 3,000 per month; must be included in offer or contract amendment; no discrimination applies |
| Transportation allowance | Competitive | Taxable | Discretionary; must be included in offer or contract amendment; no discrimination applies |
| Car allowance (sales teams) | Common | Taxable | Discretionary; must be included in offer or contract amendment; no discrimination applies |
| Housing allowance (foreign employees) | Optional | Taxable | Discretionary; must be included in offer or contract amendment; no discrimination applies |
| Mobile phone allowance | Common | Taxable | Discretionary; must be included in offer or contract amendment; no discrimination applies |
| Shift allowance | Optional | Taxable | Discretionary; must be included in offer or contract amendment; no discrimination applies |
| Supervisor allowance | Optional | Taxable | Discretionary; must be included in offer or contract amendment; no discrimination applies |
| Professional allowance | Optional | Taxable | Discretionary; must be included in offer or contract amendment; no discrimination applies |
| License allowance | Optional | Taxable | Discretionary; must be included in offer or contract amendment; no discrimination applies |
| Work From Home Allowance | Optional | Taxable | Discretionary; must be included in offer or contract amendment; may be offered at employer's discretion |
| Gym Membership | Optional | Taxable | Discretionary; must be included in offer or contract amendment; may be offered at employer's discretion |
| Medical Insurance | Optional | Taxable | Discretionary; must be included in offer or contract amendment; may be offered at employer's discretion |
| Life Insurance | Optional | Taxable | Discretionary; must be included in offer or contract amendment; may be offered at employer's discretion |
| Wellness | Optional | Taxable | Discretionary; must be included in offer or contract amendment; may be offered at employer's discretion |
| Relocation | Optional | Taxable | Discretionary; must be included in offer or contract amendment; may be offered at employer's discretion |
| Utilities | Optional | Taxable | Discretionary; must be included in offer or contract amendment; may be offered at employer's discretion |
Termination
Taiwanese law allows for probationary arrangements, but this summary does not specify a statutory minimum notice period for termination. Employers should define clear notice rules in contracts while staying within local legal limits on probation length.
Maximum probation period
120 days
