This study examines the effects of imputation systems and tax reforms under the imputation system on foreign ownership of Taiwanese listed firms. As the tax clientele theory predicted, the results show that after the implementation of imputation systems in 1998, Taiwanese firms with higher imputation credit tend to have a lower percentage of foreign ownership, ceteris paribus. Further, after adopting the alternative minimum tax in 2006, firms paying the higher alternative minimum tax tend to have a lower percentage of foreign ownership. Finally, after reducing the corporate income tax rate in 2010, firms with a decreased effective tax rate tend to have a greater percentage of foreign ownership. Our study extends prior research by providing empirical evidence on the tax clientele theory under an imputation system and contributes to the understanding of the substantive effects of corporate tax reforms under such an imputation system.