Employers and the foreign professionals they send to/bring into Taiwan may benefit from lower assignment-related costs if they qualify for the tax incentive measures applicable to foreign professionals.
The tax incentive scheme for EGC holders has seen a soaring increase in the number of EGC applicants over the years.2 However in practice, there are particular requirements EGC holders or prospective EGC holders must fulfil in order to qualify for such tax incentives.
In addition to meeting the legal requirements of the Foreign Talent Act as described below, EGC holders must correctly fill out the “Application for Exemption from Income Tax of a Taxable Year for Foreign Special Professionals” and attach relevant documentation evidencing eligibility/applicability when filing their Taiwan annual income tax return so that the tax incentives can be applied.