ARTICLE 25 TAX INCENTIVE
Technical service income in Taiwan — taxed on 15% of revenue once approved
Under Article 25, Paragraph 1 of the Income Tax Act, an eligible foreign profit-seeking enterprise may, once approved, calculate its taxable income as 15% of its Taiwan-sourced business revenue. We have completed and secured approval for applications from Japanese and Vietnamese companies.
15%
Taxable income basis once approved (of Taiwan-sourced revenue)
2 cases
Approved applications: Japanese / Vietnamese companies
Track Record
JP Japanese Company
ApprovedEngineering & technical consulting services
- Legal Basis
- Income Tax Act §25(1)
- Income Type
- Income from technical services provided in Taiwan
VN Vietnamese Company
ApprovedSoftware technical consulting services
- Legal Basis
- Income Tax Act §25(1)
- Income Type
- Income from technical services provided in Taiwan
Services Included
- Preliminary assessment of cross-border transactions and contract terms
- Eligibility analysis for Article 25 treatment
- Preparation of application documents and Chinese translations of contracts
- Filing the application with the competent authority on your behalf
- Handling requests for additional documents and clarifications during review
- Advisory on tax refunds and follow-up tax matters after approval
Who Should Talk to Us
- Foreign companies providing technical services in Taiwan and receiving fees for them
- Companies whose Taiwan clients have already withheld tax on payments and want to confirm whether the tax burden is too high
- Companies drafting a cross-border technical services contract who want to confirm the tax treatment in advance
- Companies that have already had tax withheld and want to assess the feasibility of a refund once approved
※ Actual outcomes for individual cases depend on the specific transaction details, contract terms, and the competent authority's review.
We have hands-on experience helping foreign enterprises apply for the tax incentive under Article 25, Paragraph 1 of the Income Tax Act.
We previously assisted a Japanese company with income from technical services provided in Taiwan — analyzing the transaction and contract terms, preparing the application documents, and applying to the competent authority for treatment under Article 25, Paragraph 1 of the Income Tax Act. The application was approved after review.
Want to check whether your company's transactions may qualify? Share your contract and the nature of the income for a preliminary assessment.
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