More than 8,000 people have been moved from their homes, many from southern areas prone to landslides, according to the Central Emergency Operation Centre.
"The whole country is now considered an alert zone," an official from the National Fire Agency told AFP.
Around 5,000 of those who have been evacuated were from the landslide zones in the south -- 3,000 were moved out of Kaohsiung city and 2,000 others from Pingtung county.
Offices and schools closed in Taipei and eight other cities, with residents advised to stay indoors as the typhoon churns towards the island.
Packing winds of up to 209 kilometres an hour, Soulik is expected to make landfall on the north-east coast around 1900 GMT today, the Central Weather Bureau said.
The bureau downgraded Soulik from a super typhoon to a moderate typhoon but warned residents across the island to prepare for "extreme torrential rain" -- classified as 350mm within 24 hours -- and rough seas.
"I saw TV reporting that the typhoon may bring in up to one metre of rainfall. That would be terrible and reminded me of the painful memories last year," Ginghong Izan, a male migrant from the Amei aboriginal tribe told AFP, speaking outside his home in Hsichou village.
"My TV, computer, refrigerator and furniture were all flooded when (Typhoon) Saola hit in August. It cost me around USD 6,670," the 52-year-old said, adding that he started moving valuables to higher parts of his house two days ago.
Other villagers were busy packing up their personal belongings and were reinforcing the roofs of their wooden homes.
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