Taiwan raises tax deferral cap on employee stock awards to NT$10 million

Aug 27, 2026

Taiwan's legislature passed changes to its industrial innovation law to help companies hold on to talent, a win for tech workers paid in stock and for startups raising money.

  • Employees can now defer tax on up to NT$10 million a year in stock awards, double the old NT$5 million limit, starting January 2027.
  • The old cap had not been touched in over a decade and was seen as too low next to what neighboring countries offer.
  • Angel investors get tax breaks on startups up to 8 years old, up from 5, so more young companies qualify.
  • Venture capital funds face easier rules too, with the investment thresholds needed to qualify cut sharply in the early years.

Outlook: Companies competing for engineers get a stronger stock-based pay pitch once the rules take effect in 2027.

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