Taiwan's Ministry of Finance issued a notice clarifying that taxpayers with dividend income could qualify for a tax refund even when their total income was below the tax threshold. The tax credit on dividend income could exceed tax payable, allowing eligible taxpayers to claim the difference as a refund.
Taiwan’s Ministry of Finance has issued a notice on 24 September 2026, clarifying the possibility of tax refunds for individuals claiming the tax credit for dividend income.
Since the 2018 tax year, individuals receiving dividends or surpluses from companies, cooperatives or other legal entities have been able to include the income in their total taxable income. An 8.5% tax credit is available on dividend income, subject to a maximum credit of TWD 80,000 per filing household.
The Bureau gave the example of a local resident, Mr Chang, whose total income for the 2025 tax year was TWD 250,000. Although this was below the tax threshold, part of his income came from stock dividends.
For taxpayers with relatively low total income, the tax credit on dividend income may exceed their tax payable. The difference can then be claimed as a refund. With assistance from the Bureau, Mr Chang completed his tax filing and received a refund.
The Bureau stressed that tax refunds are not issued automatically. Taxpayers must complete the income tax filing procedures, after which the return must be verified and approved before a refund can be issued. Taxpayers receiving dividends are therefore advised to check their refund eligibility even when their income is below the tax threshold.
The Bureau also recommended selecting “Direct Deposit (Account Transfer) Refund” when filing so that approved refunds can be credited directly to a designated bank or post office account.
