PY-TW Taxing Method (SAP Library - Payroll Taiwan (PY-TW))

PY-TW Taxing Method

Definition

According to legal requirements in Taiwan, the taxing method for local employees and foreign employees who stay in Taiwan for more than 183 days vary. The different methods can be categorized as follows:

Calculating tax using a formula

(from Tax Withholding Fast Formula table (T7TW2B))

Calculating tax using tax withholding table

(from Tax Withholding table (T7TW2A))

Calculating tax using a fix tax rate

(from Wage Type Dependent Tax Rate table (T7TW2E))

The taxing method for foreign employees who stay in Taiwan for less than 183 days is:

Calculating tax using tax rate

(from Wage Type Dependent Tax Rate table (T7TW2E))

See also:

PY-TW Examples of Tax on Salary