Tax Number In Taiwan: An Expats Guide
Welcome to the ultimate guide on obtaining your tax number in Taiwan! As an expat navigating the intricacies of living in this beautiful country, understanding the essentials of the tax system is crucial.
In this article, we’ll unravel the mysteries surrounding Taiwan’s tax identification number, ensuring you have a clear grasp of the process and its significance.
Get ready to embrace financial empowerment and seamless compliance as we walk you through the necessary steps to obtain your tax number in Taiwan.
Why Is The Tax Number Needed?
The tax number is linked with the identity of a person. Identity is essential. It is usually described with multiple associations related to a particular individual.
It can be one’s nationality, ethnicity, profession, education, or even place of birth. Every country has some documentation that is used as a legal document that identifies a person.
Usually, the documentation for verification purposes is referred to as the national identity card in which the social security number is mentioned.
Countries need the individual’s identity for not just verification purposes but also for different procedures like opening a bank account, taxation, or even background checks in criminal proceedings.
A specific number is allotted to every individual on their national identity card that is unique to that particular individual. Some countries use the number allotted to every citizen as the number that lists them as taxpayers.
But there are different proceedings when it comes paying taxes for non-individuals and foreigners.
Let’s look at the article to learn about the allotment procedure of Tax Number and Tax ID!
What Is the Tax Number In Taiwan?
The jurisdiction that allows the Tax Identity Number is the Republic of China (Taiwan).
In Taiwan, the Tax Identification Numbers are, in short, referred to as TIN.
Both individuals and entities are allotted tax numbers in Taiwan. Further categorization has been done in the following manner:
Individuals
⦁ Nationals
⦁ Non-Nationals
Non-individuals
⦁ Business entities
How Are Individuals Assigned Their Tax Numbers In Taiwan?
The Individuals are usually categorized as nationals or non-nationals. The details are given below:
Nationals
Nationals are the people who have applied for or own a household registration in Taiwan.
It can be in the past or continue to do so in the present. Their household registration application verifies that they have a National ID Card Number.
The nationals can then use this National ID card number as a Tax Number.
Non-nationals:
This category involves individuals who have never applied for household registration, people of Hong Kong/ Macau Residents or Mainland China area, and foreigners.
They are assigned either:
⦁ U.I. number (Unified Invoice number)
⦁ Tax Code (Those who don’t acquire a U.I. number)
For Foreign Individuals TIN depends on its documentation and identification. Any individual that has a Chinese ID card for its identification then the card number will be that individual’s identification. It will also be used in any required legal documentation.
Suppose the individual does not have a Chinese ID card and uses a passport or any other documentation that verifies his identity.
In that case, that particular document can be used to present to a local tax office, which can then issue the TIN accordingly.
In some regions, passport numbers can also be used as TIN, especially for foreigners.
When Are The Individuals Not Automatically Issued A TIN?
Individuals are usually issued TIN in Taiwan, automatically. However, there can be a few incidents when the individuals have yet to be issued TIN.
Mostly when people never had any household registrations in Taiwan or needed their national I.D. card.
People who have stayed in Taiwan or the Republic of China for a very short period of time (usually less than 90 days) are also not issued TIN.
However, the accessibility of TIN is no issue, as they can quickly get it themselves.
They can produce the Tax Codes by quickly accessing the coding principles of the Taiwanese Tax authority online.
How Are Non-Individuals/Entities Assigned Their Tax Numbers?
The tax numbers assigned to non-individuals (Business entities and corporations) are known as:
⦁ Business Administration Number (B.A.N.)
⦁ Government Unified Invoice (G.U.I.)
Business Administration Number (B.A.N.)
Generally, the Uniform Social Credit Code is used as the Tax Identity Number of an entity. This number can be found on the entity’s Business Licence.
If there is no Uniform Social Credit Code assigned to the business entity, then the authority of the local tax office assigns its TIN which has 18 digits.
The taxation office assigs TIN according to the relevant rules of the taxation authority. After 2018, the rules have changed. Previously, the 15-digit Taxation Identity Number was used.
Now 18-digit code is used. Due to this transition, some entities might still use the same code printed on their Tax Registration Certificate.
Government Unified Invoice (G.U.I.) / V.A.T. Number IN Taiwan
The business entities must also have a G.U.I., Government Unified Invoice, to record any monetary interaction with other corporations.
A GUI number consists of two letters before any numerical eight digits. The companies are assigned these alphanumeric codes as a range of numbers by the tax authorities of Taiwan.
Corporations and independent business entities must have a G.U.I. number on every document that may track value-added tax (V.A.T.).
So, it will be against the law of Taiwan if every sales invoice, down payment document, debit & credit memo, and purchase or sales return document does not have a G.U.I. number. This act against the law can be a punishable offense.
Also, keeping a record of All interactions through the use of G.U.I. makes the V.A.T. returns easier.
How To Obtain B.A.N.?
A BAN can only be achieved if it has been applied for. Business Registration Act, Company Act, and other similar laws are followed when one initiates a business and wants to register it in Taiwan.
One usually applies for B.A.N. when the business is started. But it may also be applied when the company has to pay or withhold tax under the relevant Taiwanese laws.
Does The Jurisdiction Automatically Issue TINs To All Residents For Tax Purposes?
The jurisdiction only issues TINs automatically to those who use their their Chinese ID card as their main source of identification.
However, the issuance of TIN occurs for the individuals who use their passports for identification, when they pay their first Tax Payment.
Issuances of TINs for entities is a different issue. Entities do no get immediate issuance of Tins rather they have to apply for it first at the National Burau of Taxation.
How Do Entities Apply For A Tax Identification Number In Taiwan?
Individuals get their TIN assigned to them automatically.
However, offices of International Organizations, Civil associations, or any other businesses need to apply for TIN or B.A.N. in Taiwan and get permission from the National Bureau of Taxation.
The procedure is quite simple. Just follow the given steps for an easy solution:
Step 1:
First, it needs to open the website of the Ministry of Finance. Open the section e-Taz. Select “Download document and file” from the menu and click “Tax Administration.”
Then download the form labeled “Registration for the Establishment and Alteration of the Tax Code Number for Withholding Agencies”. Once the form has been downloaded, could you fill it out?
Step 2:
When the form has been filled out, please submit it to the nearest branch of the National Taxation Bureau. The National Taxation Bureau of Taipei and the National Taxation Bureau of the Central Area are one such branch.
Also, attach the required documents. When the needed documents are also submitted with the form, one can take a sigh of relief as the process has finished within a day.
Required documents:
- One photocopy of the INGO registration certificate
- National Identification Cards, photocopies of the National ID Cards.,
- Remember to bring your seals!
3. Foreign national applicants can showcase their passports and also need to provide a photocopy of the “Alien Resident Certificate”. - One photocopy of the most recent property tax payment on their permanent residence in Taiwan.
- An official property tax certificate issued by the National Taxation Bureau must also be provided.
- A photocopy of the lease must be provided if the applicant is renting a residence.
What’s The Format Of The Tax Number In Taiwan?
Generally, a tax number is a ten-digit code. It begins with an alphabet first. Then it is followed by a nine-digit numerical value.
The order of the Tax number is essential as the alphabet and numerical values represent information about the individual.
Alphabetic Letter: The alphabetic letter represents the code for the area that an individual belongs to or lives in. The area code refers to the municipality, county, or city where that individual had applied for house registration.
Number: The number represents the gender of the individual. If the number “1” is the first number of the tax code, then the individual will be male. If it is number “2”, the individual will be female.
What Is The Structure Of The U.I. Number In Taiwan?
There are two structures of U.I. numbers in Taiwan.
⦁ Old- issued before January 1, 2021
⦁ New- issued from January 2, 2021
Old Structure
The U.I. Number assigned by January 1, 2021, had a different pattern. It was a ten-digit code that had two alphabetic letters in the beginning. Eight-digit numeric numbers then followed the code.
The alphabet assigned showcased the gender of the individual and the area code where the U.I. number had been issued to the particular individual.
The first alphabet showed the area code of issuance of the U.I. number.
The second alphabetic letter represents gender. Alphabets used for males were “A” or “C”. “B” or “D” had been used for females. The last number of the U.I. number was a check digit.
New Structure
This old form of U.I. Number will only be accepted on January 1, 2031. The U.I. Number issued from January 2, 2021, in Taiwan, is a ten-digit code.
It also begins with an alphabetic letter followed by a nine-digit number. As was in the old pattern of U.I., the alphabetic letter in the new pattern also represents the municipality, county, and city area code by which the U.I. Number was issued.
However, numbers are being used to represent gender now. “8” is used for males, and “9” for females. The last number also remains a check digit.
What Is The Structure Of The Tax Code In Taiwan?
⦁ The structure of the Tax Code for individuals of Mainland China area: It is a seven-digit code that begins with 9. Next comes the last two numbers of the individual’s birth year and the four numbers of the individual’s birth month and day.
⦁ It is a ten-digit code for individuals other than those living in mainland China. It begins with the individual’s date of birth. It is followed by the first two alphabetic letters of the individual’s name on the passport.
⦁ Structure of B.A.N: An eight–digit code that consists of numbers.
Where Do You Find Your Taiwan Tax Number?
The assigned Tax number in Taiwan can be different for different people.
The categories have been discussed above in the article. So, the Tax number can also be found on different documents for different people.
Some Individuals use National ID Card Number or U.I. number, or Tax code as their Tax Number in Taiwan. Businesses can use B.A.N. as their tax numbers.
These numbers can be found in the following places:
National ID Card Number
The National ID Card Number can be found on the household certificate, passport, and I.D. card of the inhabitants of the Republic Of China.
U.I. Number
The U.I. Number can be seen on:
⦁ R.O.C. (Taiwan) Resident Certificate
⦁ Exit & Entry Permit Taiwan Republic of China
⦁ R.O.C. (Taiwan) UI No. Basic Information Form.
Tax Code
The individual taxpayers who neither have the National ID Card Number nor the U.I. Number are usually those who have stayed in Taiwan for a short time.
They may produce Tax Codes themselves as their TINs by reference to the coding principle issued by the taxing authority.
B.A.N
The B.A.N. of a business entity is shown on the company registration certificate or business registration certificate. For non-profit organizations, the B.A.N. is shown on the BAN-issuance notification.
Conclusion
Congratulations on mastering the ins and outs of obtaining your tax number in Taiwan! Armed with this vital piece of information, you’re now equipped to confidently tackle your tax responsibilities as an expat.
Remember, knowledge is power, and understanding the tax identification process will streamline your financial journey in Taiwan.
Embrace the opportunities this new insight brings, and pave the way for a successful and fulfilling experience as an expat in this dynamic and welcoming country.
Happy tax-paying!
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