Banking, Money and Taxes in Taiwan
The Taiwanese economy is among the 20 largest in the world, and is underpinned by a strong, reliable, and efficient (if not always foreigner-friendly) banking system.
The currency used in Taiwan is the New Taiwan Dollar (NT$), which is subdivided into 100 Cents.
Banks in Taiwan
Expats moving to Taiwan have plenty of sound banking institutions to choose from. Local banks that are popular with expats include International Commercial Bank of China, China Trust Bank, Bank of Taiwan and Taichung Bank. Alternatively, expats can look to opening an account at a local branch of a foreign bank, such as HSBC, Citibank or Standard Chartered.
While it's recommended expats go the foreign bank route, it's not always possible – as some employers (especially in the ESL world) will insist that they pay your salary via direct deposit into a Taiwanese bank account.
Internet banking remains unpopular in Taiwan, and even when the service is offered, some Taiwanese banks don't have English versions of their web sites!
Opening times vary a bit between banks, but are generally from 9am to 3.30pm, Monday to Friday, and from 9am to 12.30pm on Saturday.
ATMs are widely available, and operate on a 24-hour basis. Foreign credit or debit cards (with Plus or Cirrus symbols) can be used to withdraw cash in Taiwan, but they will incur charges. Similarly, using your Taiwanese ATM card at a machine operated by a different bank, will incur a NT$ 7 charge. ATMs in Taiwan offer English menus, and have the facilities for you to transfer money and pay your bills. Credit cards are accepted by hotels and large retail outlets, but less so in smaller establishments. It is common practice in Taiwan to use cash whenever possible.
Opening a Bank Account in Taiwan
Opening a bank account in Taiwan is a straightforward process; however, as previously mentioned, be sure to check whether your employer requires you to open an account with a specific bank before formally starting the process.
To open a bank account, expats must appear in person at the bank of their choice, in possession of the following:
- Passport, and copies of information and visa pages
- Alien Registration Card (ARC)
- An initial deposit of at least NT$ 100
- It is not necessary, but recommended, that you get a Taiwanese colleague to write out your full name, address and contact information in Mandarin for you – for ease of capturing at the bank
This should ensure that a 'demand deposit' account is opened for you. Your ATM card will arrive in the post about a week or later – remember to request a card with a Plus or Cirrus symbol on it, so you can access your Taiwanese funds from outside the country, if needed.
Taxes
Expats will be subject to 20 percent tax on their personal income for the first 183 days of their stay in Taiwan; thereafter, they will be taxed according to the following progressive scale (salary in NT$):
- 0-500,000 5%
- 500,001-1,130,000 12%
- 1,130,001-2,260,000 20%
- 2,260,001-4,230,000 30%
- 4,230,001 and over 40%
If, after 183 days you revert to a tax bracket that is below the initial 20 percent, you will be refunded your excess taxation when you file your return. After staying for 183 days, you also qualify for a NT$ 82,000 tax exemption.
You will not be taxed on your worldwide income while in Taiwan.
