How should I price products? Should I add tax on top?

Updated 2026-09-19

Companies mainly pay two taxes: VAT and corporate income tax. When pricing, take the "pre-tax price (what you actually want to receive)" and add 6–8%:

  • 5% for VAT (collected on the government's behalf; it was never your money)
  • 1–3% for the corporate income tax you may pay

That way, paying tax never feels like it comes out of your own pocket.

Why 1–3% for corporate income tax? Most companies with annual revenue under NT$30 million use expanded review, where the estimate is "revenue × expanded-review net profit rate × 20%". Most industries have a rate of 6–10%, which times 20% gives 1.2%–2%, the estimated corporate income tax.