Banking, Money and Taxes in Taiwan

Banking, money and taxes in Taiwan are generally easy to navigate. The banking system is efficient and reliable.

Once new arrivals have the appropriate documentation, opening a bank account is easy. Taiwan is traditionally a cash-based society, and ATMs are plentiful and can be found throughout the destination. That said, the card payment market is growing, including alternative payment options such as the EasyCard.

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Money in Taiwan

The currency used in Taiwan is the New Taiwan Dollar (TWD), subdivided into 100 cents. In common usage, Taiwanese money is often referred to as kuài or yuán, although this is not to be confused with the Mainland Chinese Yuán.

The New Taiwan Dollar is available in the following denominations:

• Notes: 100 TWD, 200 TWD, 500 TWD, 1,000 TWD and 2,000 TWD

• Coins: 1 TWD, 5 TWD, 10 TWD and 50 TWD

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Banking in Taiwan

Taiwan has a sophisticated banking system, and expats have a wide variety of options when it comes to managing their finances.

Internet banking is available, although some banks don't have English versions of their websites. Banking hours can vary, but are generally from 9am to 3.30pm, Monday to Friday. Some banks are also open from 9am to 12.30pm on Saturdays.

Opening a bank account

Local banks that are popular with expats include CTBC Bank, Bank of Taiwan and Taichung Bank. Alternatively, expats can open an account at a local branch of a foreign bank such as HSBC, Barclays, Citibank or Standard Chartered.

While many new arrivals use foreign banks in Taiwan, this may not always be possible, as some employers insist on paying salaries directly into a Taiwanese bank account.

To open a bank account in Taiwan, expats will need an Alien Resident Certificate (ARC). Other documents that may be required include a passport or other proof of identity, and proof of residence. A minimum deposit is also required when opening an account.

ATMs and credit cards

ATMs are widely available, and they operate on a 24-hour basis. While some ATMs only accept Taiwanese cards, foreign credit or debit cards can usually be used to withdraw cash in Taiwan, but will incur charges. Even using a local card at an ATM operated by a different bank than one's own will incur charges. ATMs in Taiwan offer English menus and facilities for transferring money and paying bills.

Credit cards are accepted by hotels and large retail outlets, but less so in smaller establishments. It's common practice in Taiwan to use cash whenever possible, although this is rapidly changing, and there is rapid growth and prevalence of digital payments.

EasyCard

One card payment method that has burgeoned in popularity is the EasyCard, a contactless smart card used for public transport and other services, such as parking, bike rental and convenience stores. It was launched in 2002 and has since become a popular and convenient way for locals and expats to travel around Taiwan.

EasyCards can be purchased at any MRT station, convenience stores and EasyCard service centres located in major cities. Payments can be made at the entrance of MRT stations and on buses, and the card can be used to pay for parking and small purchases. It also offers discounts on some transport services, such as the YouBike bike rental system and some tourist attractions.

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Taxes in Taiwan

Expats staying in Taiwan will be subject to a withholding tax of 18 percent on their personal income for the first 183 days of their stay. Thereafter, both their income derived in Taiwan and their worldwide income will be taxed according to a progressive scale of between 5 and 40 percent.

As expat taxes can become quite complicated, we recommend hiring an experienced expat tax practitioner to ensure that tax obligations in both Taiwan and the expat's home country are being met.