Knowledge Zone

Coming to work in Taiwan, the first step is finance.

When you move to a new country for work, in addition to adapting to the workplace culture, there are many "financial matters" to handle: Which bank should you open a bank account with? When does your health insurance take effect? Why does everyone talk about "filing taxes" every May? If no one tells you these questions, it's easy to get completely confused.

This guide uses a clear and easy-to-understand approach to teach you four essential things to know when working in Taiwan: opening a bank account, enrolling in National Health Insurance and Labor Insurance, understanding the new labor retirement system, and filing income tax . Each step includes specific instructions to help you confidently navigate the financial aspects of life in Taiwan.

I. Bank Account Opening

After starting work in Taiwan, the first financial matter to handle is opening a local bank account. This way, your employer can transfer your salary, and you can pay rent, utilities, and make payments via mobile payment.

Documents required for opening an account

Recommended bank selection

A friendly reminder: When opening an account, it's recommended to apply for a chip-based debit card (a debit card linked to the account), which can be used at convenience store ATMs and for online shopping. If you need a credit card, you usually need to have at least one year of credit history in Taiwan. Newcomers can apply for a prepaid credit card as a temporary solution.

II. National Health Insurance and Labor Insurance

Taiwan's social insurance system is divided into two independent systems: National Health Insurance (NHI) covers medical care, while Labor Insurance (LEI) covers occupational injuries, unemployment, and other risks. Both are mandatory; you don't need to apply for them yourself, your employer will handle it for you.

National Health Insurance (NHI)

Labor Insurance

For public institutions employing five or more people , employers must provide labor insurance for their employees. Labor insurance coverage includes: occupational injury and illness, maternity benefits, unemployment benefits, and old-age benefits.

• The premium is shared by the employer, the employee, and the government (with the employee bearing approximately 20%).
• If your employer has not provided you with insurance, you can report it to the Department of Labor's 1955 Labor Consultation and Complaint Hotline.
• Labor protection services are available in multiple languages, including Vietnamese, Indonesian, and Thai.

III. New Labor Retirement System: Your Retirement Account

In addition to labor insurance, Taiwan also has a new labor retirement pension system (referred to as the new labor retirement system) , which is your personal retirement savings account.

Important: Your new retirement account is your property and will not be returned to your employer even after you leave your job. It is recommended that you check it every six months to confirm that your employer has made the necessary contributions.

IV. Income Tax Filing

Taiwan's individual income tax is filed annually in May (based on income from the previous year). Filing can be done online (via the Ministry of Finance's electronic filing system) or in person (at the National Taxation Bureau).

Residents vs. Non-residents

Your tax rate depends on the number of days you stay in Taiwan:

Resident tax brackets (applicable in 2026)

Deductions available to residents

• Individual tax exemption : NT$97,000 per person (starting in 2025)
• Standard deduction : NT$131,000 for single individuals; NT$262,000 for married individuals filing jointly.
• Special deductions for salary income : Maximum NT$218,000
• Self-collected retirement pension : The full amount can be deducted from income.
• Rent : A maximum deduction of NT$180,000 per year is allowed (tenancy agreement and proof of payment required).

Application process

1. Prepare your ARC and proof of your previous year's pay stubs (W-2 form, withholding slips).
2. Visit the Ministry of Finance's electronic tax filing and payment service website (etax.nat.gov.tw) or download the app.
3. The system will automatically populate the salary information declared by the employer. After confirmation, other income can be filled in.
4. Calculate the tax payable and select a payment method (bank transfer, credit card, convenience store payment).
5. Application period: May 1st to May 31st each year

A friendly reminder: If you are a non-resident, your salary has already been withheld by your employer at the source, so you usually don't need to file a separate report. If you have any questions, you can visit your local IRS office in person; most counties and cities have English-speaking service counters.

V. Frequently Asked Questions (Q&A)

Q1: I just arrived in Taiwan and don't have a health insurance card yet. What should I do if I get sick?

It takes about 2-3 weeks to receive your health insurance card after you add coverage. In case of emergency medical treatment, you can present your passport, ARC (Advanced Medical Record), and proof of employment from your employer to the hospital to show that you have completed the insurance application. The hospital will usually accept this and reimburse you afterwards. Alternatively, you can pay out of pocket first and apply for a refund after you receive your health insurance card.

Q2: I changed jobs. Will my health insurance and labor insurance be interrupted?

It will not be interrupted, but you should pay attention to the "transfer of insurance" procedure. After leaving a job, if there is a gap between the start of your new job, you should continue to enroll in insurance through "voluntary enrollment" (through the labor union or local government office) to avoid affecting your medical rights.

Q3: I'm only staying in Taiwan for six months, do I need to file taxes?

If you have stayed in Taiwan for less than 183 days in a given year (non-resident), and your employer has already withheld 18% of your salary, you usually do not need to declare it separately. However, if your income is not salary-based (such as labor remuneration or royalties), it is recommended that you check with the National Taxation Bureau to see if you need to declare it.

Q4: Can I withdraw my retirement pension in advance?

You cannot withdraw the funds early while working in Taiwan (unless you reach the retirement age of 60). However, if you permanently leave Taiwan and no longer work there, you can apply to the Bureau of Labor Insurance to withdraw the entire amount in your account in a lump sum.

Q5: Can foreigners apply for credit cards in Taiwan?

Yes, but usually you need: a record of working in Taiwan for more than a year, a local bank account, and salary transfers to the same bank. If your application for a regular credit card is rejected, you can first apply for a secured credit card , deposit a certain amount as a guarantee for your credit limit, build up your credit history, and then apply for a regular card.

VI. Relevant Resources and Contacts

If you have any further questions about Taiwan's financial system, please feel free to contact us through this platform. We are happy to help you clarify the details and find the most suitable approach.

Contact email: service@tnstw.com

This document provides a general explanation of financial regulations. Relevant provisions may change as regulations are amended. Please refer to the announcements of the competent authorities for the most accurate information.

※ Information Timeliness Reminder: The amounts, rates, market conditions, and regulations contained in this article are information as of the time of writing (2026). Basic wages, labor and health insurance rates, etc., may be adjusted every year. Please refer to the latest announcements from the competent authorities and current regulations for the most accurate information.