When I first started working in Taiwan, I honestly didn’t pay much attention to taxes. My employer deducted money every month, and I thought that was the end of it. But like most OFWs, I eventually learned that the Taiwan tax system has its own rules — and if you don’t understand them, you might lose money that should have gone back to you.
If you’re an OFW in Taiwan, keep on reading to learn how taxes work, when to file, and how to claim refunds.
Why Paying Taxes as an OFW in Taiwan Matters
Many of us think of taxes as just another deduction from our salary, but in Taiwan, paying taxes correctly carries real benefits for OFWs.
- It’s a Legal Requirement
Taiwan law requires all workers, including OFWs, to file and pay taxes. Meeting this obligation protects your work status and keeps your record clean with both your employer and the government.
- It Protects Your Residency and Work Rights
Your tax record is often checked when renewing your ARC, applying for loans, or even when switching jobs. Unpaid taxes or missing filings can cause unnecessary problems.
- You May Be Eligible for Refunds
Filing is the only way to check if you’ve overpaid. Many OFWs receive thousands of NT dollars back each year — money that goes directly to support their families.
- It Supports Public Services You Benefit From
Taxes fund Taiwan’s healthcare, transportation, and labor programs — services that OFWs use during their stay.
Bottom line: Paying and filing taxes is not just an obligation. It’s also a way of protecting your hard work and ensuring you get back what’s rightfully yours.
Understanding Taiwan’s Tax System
Taiwan follows a calendar-year tax system, meaning taxes are calculated from January 1 to December 31 each year. All individuals, including OFWs, must file an annual tax return in May covering the previous year’s income.
The system is based on residency status:
- Tax Residents (≥183 days in Taiwan) pay tax on income earned in Taiwan at progressive rates ranging from 5% to 40%. The longer you stay, the more likely you’ll qualify as a resident and benefit from lower rates after deductions.
- Non-Residents (<183 days) pay a flat rate — usually 18% for white-collar workers and 6% for most blue-collar workers.
Taxes are withheld monthly by employers, but you must still file annually to balance your account with the tax bureau. If too much was withheld, you can apply for a refund; if too little, you’ll need to pay the difference.
Other deductions like labor insurance, NHI, and pensions are managed separately but also contribute to your overall financial responsibilities while working in Taiwan.
Tax Year and Filing Schedule in Taiwan
- Tax Year: January 1 to December 31
- Filing Month: Every May (for the previous year’s income)
- Early Filing: Allowed within 10 days before leaving Taiwan permanently
This means if you worked in Taiwan in 2024, you file your tax return in May 2025. If you plan to leave Taiwan for good before May, you can file early at your local tax office.
Your Tax Responsibilities as an OFW
Know Your Residency Status
Residency status is the most important factor in determining how much tax you’ll pay:
- Tax Resident: Stayed 183 days or more in Taiwan in a calendar year
- Taxed on Taiwan income at progressive rates (5% to 40%)
- Non-Resident: Stayed less than 183 days
- Taxed at a flat rate:
- Usually 18% for white-collar employees
- Around 6% for most blue-collar workers
- Taxed at a flat rate:
Withholding Tax
- Employers deduct tax monthly from your salary.
- Even if tax is withheld, you still need to file your annual tax return every May. This ensures the tax bureau can check if you owe more or if you overpaid and are due a refund.
Annual Filing Deadline
- May 31 each year (covering the previous year’s income)
- If you’re leaving Taiwan permanently before May, you must file your return within 10 days before departure.
Other Deductions (Separate from Income Tax)
- Labor Insurance
- National Health Insurance (NHI)
- Pension contributions
These are required deductions but are not the same as your income tax.
Tax Refund Eligibility for OFWs
Not every OFW gets a refund, but many of us qualify without even realizing it. Here’s when you’re eligible:
You May Get a Refund If:
- You became a tax resident (≥183 days) during the year but were initially taxed at the higher non-resident rate.
- Your employer withheld more tax than required after deductions.
- You overpaid due to employer miscalculation or government error.
- You can claim within 5 years (if employer error).
- Or 2 years if the error came from the tax office.
You’re Not Eligible If:
- You stayed in Taiwan for less than 183 days in the year.
- Non-residents pay the flat rate and cannot claim a refund.
Tip: Many OFWs qualify for refunds because they cross the 183-day threshold, but their employers deducted at the non-resident rate earlier in the year.
Step-by-Step: How OFWs File Taxes in Taiwan
Paying taxes in Taiwan is straightforward once you know the process. Here’s the flow that most OFWs follow:
Step 1: Confirm Your Residency Status
- Resident (≥183 days) → You’ll be taxed at progressive rates (5%–40%).
- Non-Resident (<183 days) → You’ll be taxed at flat rates (18% for white-collar, 6% for most blue-collar).
Note: This determines how much tax you’re expected to pay.
Step 2: Collect Your Documents
Before filing, prepare:
- ARC or Passport
- Income statements from your employer(s)
- Withholding certificate (shows taxes already deducted)
- Proof of deductions (if claiming itemized expenses)
Step 3: Choose How to File
You can file your annual return in May (for the previous year’s income) using one of these methods:
- In Person – Visit your local tax office (English service is available).
- Online – Use Taiwan’s eTax Portal with English interface.
- By Mail – Send your completed return and documents to your tax office.
Step 4: Calculate and Pay Any Balance
- If your monthly withholdings were less than your actual tax due, you must pay the balance.
- Payment options include:
- Directly at the tax office
- Through designated Taiwan banks
- Online payment via the eTax system
Step 5: Get Your Receipt
- After payment, you’ll receive a tax payment certificate.
- Keep this as proof — it may be required for ARC renewal, employer verification, or refund applications later on.
Step 6: If You’re Leaving Taiwan Early
- File your tax return within 10 days before departure.
- Pay any balance due before leaving to avoid issues with immigration or refund claims.
Practical Tips for OFWs
Track Your Days
- Residency is determined by your entry and exit records.
- Keep copies of your flight tickets and ARC dates.
File Early if Leaving
- If you’re not staying until May, file before departure to avoid missing out on refunds.
Keep All Payslips and Certificates
- These documents are proof of your income and taxes withheld.
- Without them, refund claims become difficult.
Ask for English Help
- Most tax offices have English-speaking staff.
- Don’t be shy about asking for assistance.
Share the Information
- Many OFWs miss their refunds simply because they don’t know they’re eligible.
- Share this with your co-workers, especially those going home soon.
Online Inquiry System for Refund Status
One of the best parts of Taiwan’s tax system is that you can check refund status online, even if you’re already back in the Philippines.
- Use the eTax Portal’s Refund Inquiry system.
- Log in with your ARC or passport, date of birth, and inquiry code.
- The system shows:
- Refund amount
- Refund method (deposit, check, remittance)
- Processing stage (pending, approved, issued)
Note: Refunds are usually released July to September for May filings.
Tax Rates for OFWs at a Glance
| Residency Status | Tax Basis | Tax Rate |
| Resident (≥183 days) | Progressive | 5% – 40% |
| Non-Resident (<183 days) | Flat | 18% (white-collar) |
| Non-Resident (<183 days) | Flat | 6% (blue-collar) |
Frequently Asked Questions
- Do I need to file taxes even if my employer already deducts tax monthly?
Yes. Monthly withholding is only an estimate. You still need to file an annual tax return every May to confirm if you owe more or are due a refund. - Can I file taxes online if I’m already back in the Philippines?
Yes. You can use Taiwan’s e-Filing system or authorize a trusted representative with a Power of Attorney to handle your refund check. - How long does it take to receive a refund?
Refunds are usually released July to September after the May filing. Direct deposit is the fastest method, while checks and overseas remittances take longer. - Can I claim a refund from previous years?
Yes, if you overpaid. You can claim within 5 years for employer errors, and within 2 years if the error came from the tax office.
Final Thoughts
For OFWs, understanding the Taiwan tax system isn’t just about following the law — it’s about protecting the money we’ve worked so hard to earn. Filing your return on time, keeping track of your residency days, and using the online tools can make the difference between losing money or getting a refund that rightfully belongs to you.
I’ve seen many co-workers miss their refunds simply because they didn’t know the rules. Don’t let that happen to you. File on time, check online if needed, and share this knowledge with others. After all, every peso (or NT dollar) counts for us and our families back home.