Under Article 20 of the Act for the Recruitment and Employment of Foreign Professional Talent, foreign professionals in specific fields who meet certain conditions and are approved to reside in Taiwan for the first time due to their employment, or those who obtain an Employment Gold Card and work in Taiwan during the card's validity, are eligible for tax incentives.

For the first year they become residents of Taiwan, and for the following five years, if their salary income exceeds NT$3 million in a taxable year during which they have resided in Taiwan for at least 183 days, 50% of the salary income exceeding NT$3 million will be exempt from inclusion in the total taxable income for the calculation of comprehensive income tax. Additionally, the provisions of Article 12, Item 1, Clause 1 of the Basic Income Tax Act, which concern the taxation of overseas income, will not apply to them.

Article 12, Item 1, Clause 1 of Taiwan's Basic Income Tax Act addresses the taxation of overseas income for residents. It stipulates that if a taxpayer is a resident of Taiwan and receives income from foreign sources, that income may be subject to the Alternative Minimum Tax (AMT) to ensure a minimum level of tax payment.

Specifically, overseas income is included in the calculation of the taxpayer’s total income, and if it exceeds a certain threshold, the taxpayer may be required to pay additional taxes at a minimum rate. This ensures that residents with foreign income remain liable for tax obligations in Taiwan.

However, foreign professionals who qualify under the Foreign Professional Talent Employment Act are exempt from the application of Article 12, Item 1, Clause 1 of the Basic Income Tax Act, as long as they meet the conditions specified in the Regulations Governing the Reduction and Exemption of Income Tax for Foreign Specialist Professionals.

To be eligible for the tax incentives under Article 20 of the Act, a Taiwan Employment Gold Card holder must meet the following criteria:

1. They have been approved to reside in Taiwan for the first time for the purpose of work.
2. They have engaged in professional work related to recognized specific expertise in Taiwan.
3. They have not had household registration in Taiwan and have not been an income tax resident in Taiwan during the five years prior to the date of their employment, as defined by the Taiwan Income Tax Act.

By meeting these conditions, the foreign professional is eligible for tax exemptions and benefits under the Employment Gold Card program.