Taiwan sets 2026 basic income tax threshold at TWS 600,000 for profit-seeking enterprises under the Income Basic Tax Act. Basic tax is applied on income exceeding the threshold, with assessment and liability determined under the Income Tax Act and related rules.
Taiwan’s Dongshan Office, National Taxation Bureau of the Central Area, Ministry of Finance, states that according to the Ministry of Finance’s announcement No. 11404664830 issued on 19 November 2025, for the fiscal year 2026, Profit-seeking Enterprises with a basic income amount of TWS 600,000 or less are exempt from paying income tax under the Income Basic Tax Act.
For Profit-seeking Enterprises with a basic income amount exceeding TWS 600,000 for the fiscal year 2026, the basic tax amount is calculated by deducting TWS 600,000 from the basic income amount and then applying the tax rate set by the Executive Yuan (the current collection rate is 12%).
Dongshan Office further explained that for Profit-seeking Enterprises whose regular income tax calculated according to this Act is greater than or equal to the basic tax amount, the income tax payable for that year should be determined in accordance with the Income Tax Act and other relevant laws.
For those whose regular income tax is less than the basic tax amount, the income tax payable should be calculated and determined according to the Income Tax Act and other relevant laws; additionally, the difference between the basic tax amount and the regular income tax should be recognised. If there is an underreporting of the basic income amount resulting in underreported tax, in addition to the supplementary collection of taxes, penalties shall be imposed in accordance with Article 15, Paragraph 1 of this Act.
This announcement was made on 8 May 2026.
