Setting up and maintaining a Taiwan payroll
Taiwan possesses an advanced economy, a well-educated population, and expertise in many high-tech industries such as microchips, making it a common target country for foreign businesses looking to expand into Asia.
An important part of any expansion into Taiwan is hiring employees locally, which means establishing and maintaining a Taiwan payroll. To do this, you’ll need to have a good understanding of Taiwan’s complex employment laws and the overall payroll procedure. Many organizations choose to outsource this difficult phase.
At Horizons, we offer full Taiwan payroll outsourcing services for organizations expanding into the country, whether you have already registered a legal entity in Taiwan or not.
Why choose the Horizons payroll solution?
If you have an entity
If you have registered an entity for your organization in Taiwan, then we provide outsourced payroll support to help you establish and manage your Taiwan payroll. In addition, we can handle HR, contracts, and legal compliance to ensure you are fully equipped to hire locally.
This level of outsourcing is a good choice for any company that already has an entity in Taiwan and could benefit from payroll support.
If you don’t have an entity
For organizations who haven’t yet established an entity in Taiwan, we offer a comprehensive payroll outsourcing service using our Taiwan PEO to act as employer of record, while also taking care of HR, contracts, and legal compliance.
This flexible service gives you all the key benefits of hiring locally in Taiwan without the risk.
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Taiwan payroll tax rates & laws
What are the rules for payroll and withholdings in Taiwan?
Taiwan’s unique taxes and withholdings systems can be difficult to follow. The country operates a progressive tax system, with higher earners paying a larger proportion of their income in taxes.
The income tax rate is between 5% and 40%, depending on income level, and employees must also contribute to national health insurance and labor insurance.
Employers are also responsible for contributing to the both labor insurance fund (around 6% of salary) and national health insurance (around 5%).
|
Labor Insurance
|
6.65%
|
|
Pension Fund
|
6.00%
|
|
Health Insurance
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60% of the premium
|
|
Total Employment Cost
|
12.65% & health insurance premium
|
|
Pension
|
5.1%
|
|
Labor Insurance
|
1.9%
|
|
Health Insurance
|
4.69%
|
| Total Employee Cost | 11.69% |
|
Up to 540,000
|
5.00%
|
|
540,000 – 1,210,000
|
12.00%
|
|
1,210,000 – 2,420,000
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20.00%
|
|
2,420,000 – 4,530,000
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30.00%
|
|
4,530,000 – 10,310,000
|
40.00%
|
|
Over 10,310,000
|
45.00%
|
Contract entitlements and termination rights
How to set up Taiwan payroll outsourcing
To set up a payroll in Taiwan, you will first need to establish an in-country entity. This requires a minimum amount of funds ($500,000 NTD), along with the associated permits and documents. Additionally, you will need to open a Taiwanese bank account.
Alternatively, Horizons can act as your Taiwan employer of record, offering a cost-effective, time-saving option for organizations looking to hire locally. We’ll also handle the payroll setup and administration, so we can help you whether or not you have a registered entity in Taiwan.
Manage payroll in Taiwan
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.
