Invoicing and tax for freelancers in Taiwan

If you freelance in Taiwan — design, translation, development, consulting — two questions come up early: "The client wants an invoice. Can I issue one?" and "Why is the payment smaller than my quote?" This guide explains the basic ideas behind invoices, income tax withholding and the NHI supplementary premium. Rates, thresholds and amounts change, so check the latest notices from the Ministry of Finance and the National Health Insurance Administration linked at the end.

The short answer: an individual without a business registration cannot issue uniform invoices (統一發票). Companies that pay you may withhold income tax first, and may also deduct the NHI supplementary premium, then send you a withholding statement for your annual tax return.

Sole proprietor vs. registered business

	Individual (no business registration)	Registered business
Uniform invoices	Not possible	Possible; required once sales reach a set level
When the client pays	May withhold income tax and the supplementary premium	You invoice the client
Business tax	Generally none	Business tax returns; small businesses may be assessed by the tax office instead
Income tax	Added to your annual individual income tax return	Business tax and business income tax returns as well

If a client insists on an invoice (large companies often do), consider registering a business or working through an entity that can invoice. Ask an accountant whether registering makes sense for you.

Why clients withhold

Payments to you are classified by type. The common ones:

• Professional practice income (category 9A): fees for design, translation, consulting and similar professional work.
• Manuscript fees, royalties and lecture fees (category 9B).
• Some companies record short-term work as part-time salary (category 50), which follows different rules.

Withholding rates and the thresholds below which nothing is withheld differ by category; see the Ministry of Finance's withholding rules. What is withheld is not lost: it is a prepayment credited when you file your annual return.

NHI supplementary premium

On top of income tax, a payer may deduct the NHI supplementary premium once a single payment reaches a set amount. The rate and thresholds are set by the National Health Insurance Administration and differ between professional income and part-time salary; check its latest Q&A.

So decide up front whether your quote is before or after deductions, and say so on the quote.

What to confirm when you quote

• Ask how the client will classify the payment. The same job can be booked as professional income or part-time salary, and the deductions differ.
• State that the price is before withholding on the quote, so the client doesn't read it as your take-home amount.
• Check split payments. With milestone payments the deductions can differ per payment; ask the payer how they handle it.

For the rest of the quote, see How to write a quote.

What to prepare before filing

1. Every payment: date, client, gross amount, and how much tax and premium was deducted
2. The withholding statements from your clients (most can be downloaded in the tax filing system)
3. Receipts for work-related costs such as equipment and software subscriptions

If you record this as you go, filing doesn't mean digging through a year of bank transfers.

Let Docu keep the records

NEXUPIRA's Docu turns your payment records into an income/expense spreadsheet with deposits, balances and the amounts actually received on separate lines, so at month end you can see who still owes you the balance. How to file is for the tax office's rules or your accountant to decide.

FAQ

Can I work for companies without a business registration number?

Yes. Companies usually ask you to fill in a service fee form (勞務報酬單) with your ID and bank account, and then pay you as the rules require.

Do I get the withheld tax back?

It is a prepayment. When you file, it is credited against the tax you owe; if more was withheld than you owe, you get the difference back. Your actual return decides the amount.

Is the supplementary premium refunded?

Generally no. It is an insurance premium, not a tax prepayment, so it isn't credited on your tax return. See the National Health Insurance Administration's Q&A for the details.

Sources

• Ministry of Finance, eTax portal: Withholding on professional practice income
• National Health Insurance Administration: Supplementary premium Q&A
• Laws & Regulations Database: Value-added and Non-value-added Business Tax Act

This guide is general information, not tax or legal advice. For your own situation, ask an accountant or the tax office.