Monday, November 13, 2017
Taiwan's Government has approved a 50 percent tax cut for overseas workers as part of its plan to attract more foreign talent to the country.
Approved by the Legislative Yuan on November 7, the Act for the Recruitment and Employment of Foreign Professionals relaxes rules regarding visas, employment, temporary stays, and residence. It also provides for a number of enhancements to rules concerning insurance, tax, and retirement provision.
The Act allows "foreign special professionals" with an annual salary above TWD3m (USD99,340) to reduce their taxable income by 50 percent for the first three years of residence. Work permits for these categories of individuals will now be for five years rather than three under the so-called "Employment Gold Card" regime. Foreign professionals will be newly eligible for state social security, with more flexible rules on withdrawals.
Under the changes, Taiwan is to ease the requirements for spouses, minor children, or disabled adult children to obtain permanent residence based on the permanent residence of a connected foreign professional; when senior foreign professionals apply for permanent residence their dependents or spouses can be included within the application simultaneously; the adult children of a foreign professional can apply for a work permit independent of an employer; and the "lineal ascendants" of foreign professionals are able to obtain a one-year visitor visa.