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Withholding 2nd Generation NHI

The so-called withholding does not refer to the tax rate, but the employer must first withhold it and pay it to the government when paying. When you file your annual tax return, you can decide whether you want to levy more taxes or give you a tax refund based on your income and the comprehensive income tax level.

For example, you are withheld a 10% tax. But in the end, your personal comprehensive income tax rate is only 5%, and the overcharged part will be refunded to you.

Therefore, when the amount is large, the income received from the employer has been withheld. The employer must remember to withhold the payment in advance.

The second-generation health insurance supplementary premium is the revised Health Insurance Act in 2011. The purpose is to expand the fee base and increase the fairness of the premium burden, so as to solve the problem of health insurance financial losses.

The second-generation health insurance will collect supplementary health insurance premiums for 6 items other than regular salary. The supplementary premium is that as long as you have high bonuses (bonuses that accumulate more than four months of insured amount throughout the year), business income, part-time income, dividend income, interest income, rental income, etc., you will be charged an additional 2.11% health insurance supplement premium.

withholding tax rates for business income and salary income

Income Category and Code The Withholding Rate of National
(Natives, foreigners, overseas Chinese, mainlanders who have lived in the Republic of China for 183 days)
The Withholding Rate of  Foreigners 
(Foreigners, overseas Chinese, and mainlanders who have not lived in the Republic of China for 183 days)
Salary Income(50)

Salary income is deducted based on the “total monthly payment” and one of the following methods as follows:

  • Non-fixed salary: tax rate of 5% for monthly income over NT$84,501 (work study, hourly fee, three-section bonus, and year-end bonus belong to this category  Please note that this is a withholding, not a tax rate.)
  • Fixed salary: The total monthly payment is withheld in accordance with the salary income withholding method. Overtime pay is generally included in the fixed salary.
  • Income less than NT$35,700 (inclusive):6%
  • The income exceeds NT$35,700:18%
Business Income(9A9B) 10% for annual income over  NT$20,000 20% for income over NT$5,000 

Rules of Withholding 2nd Generation NHI Supplementary Premium  

Withholding Tax Rate 2.11%
Regulations of Amount (single amount) more than  NT$ 20,000 (inclusive) ~ 10 million need to withhold the supplementary premium of the second-generation health insurance
Qualifications the following six types of income must withhold the supplementary premiums of the 2nd Generation NHI:
●the accumulated bonus for the whole year exceeding 4 times the insured amount of the current month
●part-time salary income
●execution of business income
●dividend income
●interest income
●rental income