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This graphic is explained in the accompanying text PY-TW Examples: Tax on Salary Locate the document in its SAP Library structure

The following are examples of tax calculation using the taxing methods set in the Tax Category field. These include:

Tax Category
A
B
C
D
E

Taxing Method
Progressive Rate
Tax Table
Standardized computation - for A
Standardized computation - for B
Fixed rate

 

The examples are calculated based on the following:

Personal allowance

Standard deduction
Special deduction for salary
Annual salary
Estimated taxable income

: NT$70,000 for each tax payer, spouse and
dependents
: NT$42,000
: NT$58,000
: 12 * monthly salary
: Estimated Annual Salary - (Personal allowance
(1+ no. of dependents) + Standard Deduction +
Special Deduction)

If tax to be withheld < NT$600 (min. tax amount), no withholding is required.

 

Tax Rate Table

Grade

Taxable Income

Rate of Tax

Progressive Difference

1

Less than 330,000

6

0

2

330,000 – 890,000

13

23,100

3

890,000 – 1,780,000

21

94,300

4

1,780,000 – 3,340,000

30

254,500

5

3,340,000 and over

40

588,500

 

Example A

Examples of tax calculation using Tax Category A – Progressive rate that uses a tax formula

Example I

Example II

Monthly Fixed Salary
Number of Dependents

Estimated annual taxable income:
Annual salary: 25000 * 12

Formula:
300000 – (70000 * 2 + 42000 + 58000)
Annual tax: 60000 * 0.06 – 0
Monthly tax: 3600 / 12

: NT$25,000
: 1 person


= 300,000
(Grade 1)

= 60,000
= 3,600
= 300

Monthly Fixed Salary
Number of Dependents

Estimated annual taxable income:
Annual salary: 55,000 * 12

Formula:
660,000 – (70,000 * 3 + 42,000 +58,000)
Annual tax: 350,000 * 0.13 – 23,100
Monthly tax: 22,400 / 12

: NT$55, 000
: 2 persons


= 660,000
(Grade 2)

= 350,000
= 22,400
= 1,867

As this amount < NT$600 (min. tax amt), no withholding is required.

As this amount > NT$600 (min. tax amt), income tax withheld is NT$1,867.

 

Example B

Examples of tax calculation using Tax Category B – Tax Table

Example I

Example II

Monthly Fixed Salary
Number of Dependents

: NT$25,000
: 1 person

Monthly Fixed Salary
Number of Dependents

: NT$55,000
: 2 persons

Income tax to be withheld is NT$0

Income tax to be withheld is NT$1,860

 

Example C

An example of tax calculation using Tax Category C – Standardize computation - for A

Monthly Fixed Salary
Number of Dependents

Estimated taxable income:
55,000 * 12
660,000 – (70,000 * 3 + 42,000 +58,000)
350,000 * 0.13 – 23,100
22,400 / 12

Income tax withheld is NT$1,867

Total non-fixed Salary

: NT$55,000
: 2 persons


= 660,000
= 350,000
= 22,400
= 1,867



: Non-fixed salary * fixed rate = 10,000 * 6% = 600

Total income tax withheld is 1,867 + 600 = NT$2,647

 

Example D

Examples of tax calculation using Tax Category D – Standardize computation - for B

Example I

Example II

Monthly Fixed Salary
Non-fixed salary
Number of Dependents
Monthly tax
Non-fixed sal tax: 3,000 * 0.06
Total (Fixed + Non-fixed): 300 + 180

: NT$25,000
: NT$3,000
: 1 person
: NT$300
: NT$180
: NT$480

Monthly Fixed Salary
Non-fixed salary
Number of Dependents
Monthly tax
Non-fixed sal tax: 3000 * 0.06
Total (Fixed + Non-fixed): 1867 + 180

: NT$55,000
: NT$3,000
: 2 persons
: NT$1,867
: NT$180
: NT$2,047

Income to be withheld is NT$480, as is less than NT$600, no withholding is required.

Income tax to be withheld is NT$2047

 

Example E

An example of tax calculation using Tax Category E – Fixed Rate

Monthly Fixed Salary
Withholding rate

: NT$25, 000
: 6%

Income tax to be withheld is NT$1,500 for each month

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