Taiwan Tax Filing Guide for Freelancers and Small Businesses 2026

Disclaimer: This article provides general information about Taiwan tax obligations and is for educational purposes only. It is not professional tax advice. Tax laws change frequently — always verify with a qualified tax advisor and the relevant government authority for your specific situation.Disclosure: Denpyo is a receipt digitization and expense tracking platform. This article may reference Denpyo's features where relevant to the topic discussed.

Introduction

Every May, Taiwan's annual income tax filing season arrives. Whether you're a freelance designer, an independent consultant, or a small business owner running a studio, you must file your 2025 individual income tax return between May 1 and May 31, 2026. But the tax filing process for freelancers differs significantly from salaried employees — the biggest difference being that your income is classified as professional/business income (執行業務所得) rather than salary income, which directly affects your available deductions.

This guide walks you through tax brackets, deductions, the eTax online filing process, and includes a worked calculation example to help you file with confidence.

Taiwan Income Tax Overview for Freelancers

Taiwan's individual income tax is assessed on a calendar-year basis: income earned from January 1 to December 31, 2025 is declared in May 2026. All individuals with Taiwan-sourced income — including freelancers and SME owners (sole proprietors and partnerships) — must file a return.

Salary Income vs. Professional Income: The Key Difference

Salaried employees enjoy a NT$227,000 salary income special deduction. Freelancers, however, earn professional/business income (Category 9A/9B) and cannot claim this deduction.

Instead, freelancers can choose one of two methods to account for business costs:

• Actual expense deduction: Keep all receipts and invoices, and itemize actual business expenses

• Standard cost ratio: Apply the Ministry of Finance's prescribed percentage for your profession (typically 20%–45% of gross professional income)

According to the Taxation Administration, Ministry of Finance, common standard cost ratios include:

• Writers and content creators: ~30%

• Designers and programmers: ~30%

• Lawyers and accountants: ~30%

• Medical professionals: ~20%–78% (varies by specialty)

• Tutors and instructors: ~25%–46%

2025 Income Tax Rates and Brackets

Per the Ministry of Finance eTax Portal, the progressive tax rates for 2025 income (filed in May 2026) are:

Formula: Tax Payable = Net Taxable Income × Rate − Progressive Difference

Exemptions and Deductions

The following exemptions and deductions apply for the 2026 filing (per National Taxation Bureau of Taipei):

Personal Exemption

• General: NT$101,000 per person

• Age 70+: NT$151,500 per person

General Deduction (choose one)

• Standard deduction: NT$136,000 (single) / NT$272,000 (married filing jointly)

• Itemized deductions: Donations, insurance premiums, medical expenses, rent (capped at NT$180,000), mortgage interest, etc.

Special Deductions

• Salary income special deduction: NT$227,000 (NOT available to freelancers)

• Disability special deduction: NT$218,000

• Savings and investment special deduction: capped at NT$270,000

• Preschool child special deduction: NT$120,000 per child

• Long-term care special deduction: NT$120,000 per person

Important: While freelancers miss out on the salary deduction, the actual expense deduction or standard cost ratio for professional income often yields a larger tax benefit.

Step-by-Step eTax Portal Filing Guide

Taiwan's tax bureau provides a convenient online filing system via the eTax Portal.

Step 1: Prepare Your Documents

• Natural Person Certificate, NHI card, or TW FidO mobile ID

• 2025 withholding tax statements

• Business expense receipts and invoices (if using actual expense deduction)

• Proof of itemized deductions (insurance, medical, donations, etc.)

Step 2: Log In

Visit the eTax Portal, select "Individual Income Tax e-Filing," and authenticate with your Natural Person Certificate, NHI card + PIN, or TW FidO mobile ID. The system will pre-populate your income and deduction data.

Step 3: Review Income Data

The system displays income records held by the tax bureau — salary, interest, dividends, professional income, etc. Review carefully and add any missing items manually.

Step 4: Choose Your Deduction Method

Select standard or itemized deductions (the system compares automatically — choose whichever is higher). For professional income, choose between actual expense deduction and the standard cost ratio.

Step 5: Confirm and Submit

After reviewing the calculated tax amount, choose a payment method (credit card, bank transfer, ATM, convenience store) and submit. Save your filing receipt.

Worked Example

Let's calculate the 2025 tax liability for a freelance graphic designer earning NT$1,200,000:

Profile

• Status: Single freelancer

• Annual professional income: NT$1,200,000

• Cost deduction method: Standard cost ratio at 30%

Calculation

Step 1: Calculate net professional income

NT$1,200,000 × (1 − 30%) = NT$1,200,000 × 70% = NT$840,000

Step 2: Subtract exemption and standard deduction

Personal exemption: NT$101,000 Standard deduction: NT$136,000 Total deductions: NT$237,000

Step 3: Calculate net taxable income

NT$840,000 − NT$237,000 = NT$603,000

Step 4: Apply progressive tax rate

NT$603,000 falls in the second bracket (NT$590,001 – NT$1,330,000) at 12%

Tax = NT$603,000 × 12% − NT$41,300 = NT$72,360 − NT$41,300 = NT$31,060

This designer's effective tax rate is approximately 2.6% (NT$31,060 ÷ NT$1,200,000) — far below the nominal rate. By leveraging the standard cost ratio and available deductions, freelancers can significantly reduce their tax burden.

Common Deductions for Freelancers and SMEs

Whether you opt for actual expense deduction or the standard cost ratio, understanding deductible expenses is key to tax savings. Per PwC Taiwan Tax Summary, common deductible business expenses include:

• Office rent: Studio or co-working space lease

• Equipment and software: Computers, cameras, design software subscriptions

• Transportation: Business-related HSR, taxi, and fuel costs

• Communication: Internet and mobile (business-use portion)

• Supplies: Office supplies and printing costs

• Professional development: Courses, conferences, professional books

• Insurance: Business property insurance, professional liability insurance

• National Health Insurance: NHI premiums qualify as itemized deductions

SME owners may also deduct employee salaries, employer NHI/labor insurance contributions, and business tax-related expenses. Consult a CPA recommended by the Federation of CPA Associations of Chinese Taiwan (ROCCPA) to maximize your legitimate deductions.

How Denpyo Helps

The most tedious part of tax filing isn't the calculation — it's organizing a year's worth of receipts and invoices. Denpyo lets you snap photos of receipts on the go, and AI automatically extracts amounts, dates, vendors, and expense categories. Your business expenses are organized throughout the year, so when May filing season arrives, you simply export your expense summary for actual expense deduction filing. Try our tax savings estimator to see how much you could save.

Summary

• The 2025 income tax filing period is May 1–31, 2026

• Freelancer income is classified as professional/business income — you cannot use the NT$227,000 salary deduction

• Choose between actual expense deduction (keep receipts) or standard cost ratio (20%–45%) for business costs

• Progressive tax rates range from 5% to 40% across five brackets

• Use the personal exemption (NT$101,000) and standard deduction (NT$136,000) to reduce taxable income

• File online via the eTax Portal

• Use the Denpyo income tax calculator to estimate your tax quickly