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Understanding Taxes for US Expats in Taiwan

US expats in Taiwan must follow both Taiwanese and U.S. tax laws. Taiwan taxes residents on worldwide income, while non-residents only pay on Taiwan-sourced earnings. The U.S.-Taiwan tax agreement and foreign tax credits can help prevent double taxation.

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U.S. Expat Tax Deadline

15th June

Expat Tax Deadline

For U.S. expats, the automatic tax filing extension deadline is June 16th in 2025. If more time is needed, filing Form 4868 before this date extends the deadline to October 15th. The FBAR must also be submitted by October 15th. Certain special cases may qualify for an additional extension until December 15th.

Taiwan

Key Tax Rules for US Expats in Taiwan

Americans in Taiwan are taxed based on residency status. Those staying 183+ days annually after moving to Taiwan from USA are considered tax residents and must report worldwide income. Taiwan has progressive tax rates, and expats can use tax credits to reduce U.S. tax liabilities.

Tax Requirements

Residency for Tax Purposes

Staying in Taiwan for 183+ days makes you a tax resident, subject to taxation on worldwide income.

Income Tax Taiwan Rates

Progressive tax rates range from 5% to 40%, based on annual income for US citizens Taiwan

Tax on Foreign-Sourced Income

American citizens in Taiwan must report worldwide income, but tax credits may be available for foreign taxes paid.

U.S. Federal Tax Return (Form 1040)

US expats in Taiwan must file a U.S. tax return, reporting global income.

Foreign Tax Credit (FTC)

Expats can claim a credit for Taiwanese taxes paid, reducing U.S. tax liability.

Foreign Earned Income Exclusion (FEIE)

Expats earning under the exclusion limit ($120,000 for 2023) may exclude income from U.S. taxation.

U.S.-Taiwan Tax Agreement

Helps define tax obligations but does not include a full tax treaty.

Social Security & Taiwan’s Pension System

Expats may need to contribute to Taiwan’s National Health Insurance (NHI) and pension system.

FBAR & FATCA Compliance

Expats with over $10,000 in foreign accounts must file FBAR and may need to submit FATCA reports.

Key Tax Insights

Tax Facts for US Expats in Taiwan

US expats in Taiwan must stay informed about tax laws to avoid penalties and optimize deductions.

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Taiwan Taxes Worldwide Income

Tax residents must report all global earnings, but credits may apply.

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No U.S.-Taiwan Tax Treaty

Expats must rely on the Foreign Tax Credit (FTC) to reduce double taxation.

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FBAR & FATCA Reporting Applies

U.S. expats with financial assets in Taiwan must comply with U.S. foreign account reporting rules.

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    FAQs

    We Have All Your Queries Covered

    Have questions about your U.S. expat state taxes? We’re here to help. Below are answers to some common queries we encounter from expats around the world.

    Do US expats in Taiwan need to file a U.S. tax return?

    Yes, all US expats in Taiwan must file a U.S. tax return and report worldwide income.

    For a US Expat, Taiwan has progressive tax rates from 5% to 40%, based on taxable income.

    Yes, if foreign accounts exceed $10,000, US expats in Taiwan must file an FBAR and may need to submit FATCA reports.

    Tax residents are taxed on global income, but the Foreign Tax Credit can help offset U.S. tax liabilities.

    Taiwan does not tax U.S. Social Security benefits, but they may still be taxable in the U.S.

    Some expats must contribute to Taiwan’s National Health Insurance (NHI) and pension system, depending on employment status.

    Still have questions? Contact us today to get expert guidance on all your U.S. expat state taxes.

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