Foreign e-commerce businesses can apply for tax treaty relief to exempt Taiwan-sourced profits from income tax.
Taiwanese businesses paying for electronic services from foreign e-commerce enterprises may qualify for tax relief under bilateral tax treaties.
This announcement was made by the Southern Taiwan National Tax Administration (STNTA) on 5 December 2025.
According to the STNTA, if payments to foreign suppliers constitute Taiwan-sourced income, domestic companies are generally required to withhold tax. However, businesses in countries or regions with comprehensive tax treaties with Taiwan can apply for exemption on business profits derived from cross-border electronic services.
As of 31 October 2025, Taiwan has signed treaties with 35 countries and regions. Eligible foreign e-commerce firms can submit an “Application for Tax Exemption on Business Profits under Tax Treaty for Foreign Enterprises Providing Cross-Border Electronic Services”, together with proof of residence, contracts, and other supporting documents, to the relevant National Tax Administration office. Domestic firms that have already withheld tax may claim a refund once the exemption is approved.
The STNTA urged Taiwanese businesses to check whether their foreign partners’ countries have tax treaties and to submit applications to reduce tax liabilities.
