Taiwan

Taiwan uses a progressive income tax system with five brackets, ranging from 5% on income up to TWD 590,000 to 40% on income above TWD 4,720,000. A standard deduction of TWD 131,000 (TWD 262,000 for married couples filing jointly) reduces taxable income. Social insurance contributions include labor insurance (employee 20% of 12% rate = 2.4%), national health insurance (employee share approximately 1.8% of salary), and labor pension (employer 6% mandatory; employee voluntary up to 6%, tax-deductible). Total employee contributions are approximately 5-8% of salary. Taiwan has relatively moderate personal tax rates compared to other developed Asian economies. Deductions are available for insurance premiums, medical expenses, charitable giving, and mortgage interest. A special deduction for salary income of TWD 218,000 applies. Capital gains on listed securities are exempt from tax. Dividend income can be taxed via integration with progressive rates (with an 8.5% credit) or at a flat 28%. VAT is 5%. The corporate tax rate is 20%.