The National Taxation Bureau of Taipei, Ministry of Finance(NTBT), indicates an employment has remitted of the labor and health insurance premiums, which fall under the portion to be shouldered by the employer, are precluded from the employee’s income. However, the portion falling under an employee’s deductible burden may not be deducted from the employee’s income from salaries and wages when calculating withholding tax.
NTBT explains that when calculating the employee’s monthly income from salaries and wages, which pertains to the various forms of income derived from whose position or work as the income amount, and which is also the total amount paid entered in the withholding statement. As to what an employer deducts and pays from an employee’s wage on the union dues, employee/worker’s benefits dues, insurance premiums and the like, which the employee ought to shoulder, shall not be deducted from the employee’s income from salaries and wages.
NTBT further explains that withholders, when calculating resident employees’ monthly withholding tax of income from salaries and wages, shall withhold tax in accordance with the Table for Withholding Tax of Salaries of the payment year, or deduct a 5% of whose total monthly amount paid. In addition, salaries and wages derived from part-time income and non-monthly payment, where each payment not reaching the deduction starting standing, are exempt from the withholding.
