Beautiful Taiwan for Expats

The following regulations are applicable to non-residents of the Republic of China

  1. The withholding tax rate on dividend distributed by a company or profit distributed by a cooperative is 30%. However, it would be 20% in case of the investment which was approved in accordance with one of the following rules:
    • The Statute for Investment by Overseas Chinese
    • The Statute for Investment by Foreign nationals
    • The Regulations Governing Securities Investment by Overseas Chinese and Foreign Investors and Procedures for Remittance
  2. The withholding tax rate on salaries is 20%.
  3. The withholding tax rate on commissions is 20%.
  4. The withholding tax rate on interest is 20%.The interest accrued from beneficiary securities or asset-based securities issued according to the Financial Asset Securitization Act and the Real Estate Securitization Act shall be taxed at the rate of 6%.
  5. The withholding tax rate on rentals is 20%
  6. The withholding tax rate on royalties is 20%
  7. The withholding tax rate on cash awards or payments given in contests or prizes for a chance winning is 20%. However, it is tax-exempted when the prize is not more than NT$2,000 from lottery tickets or uniform invoices under the auspices of the government.
  8. Withholding tax rate on fees for professional practice is 20%.
  9. After deducting a regulative exemption, the retirement payments or pensions shall be withheld at the rate of 20%
    Additionally, income which is not subject to the Withholding Code shall be taxed in scope with the following withholding tax rate.
    • Income from property transactions shall be filed and taxed at the rate of 35%
    • Profits from occasional trade shall be filed and taxed at the rate of 30%
    • Income from transferring the tax-differed stocks, the par value of the stocks shall be deemed as the taxable income of the transfer year. If the actual transfer price of such stocks at the time of sale or the market value of such stocks at the time of bestowal or distribution of estate is lower than the par value, the actual transfer price or the market value shall be deemed the taxable income. Such an income shall be filed and taxed at the rate of 30%

      However such stocks obtained for the investment approved in accordance with the Statute for Investment by Overseas Chinese or the Statute for Investment by Foreign Nationals, as well as the Regulations Governing Securities Investment by Overseas Chinese and Foreign Investors and Procedures for Remittance, the taxable income shall be taxed at the rate of 20%
    • Mortgage interest and Miscellaneous income shall be filed and taxed at the rate of 20%
    • Where a trust deed is set up by a profit-seeking enterprise, the beneficiary shall be taxed at the rate of 20% on the value of his entitlement to the trust in the year of setting up, and a newly replaced beneficiary shall be taxed in the year of replacement. Furthermore, the beneficiaries shall be taxed at the rate of 20% on the increasing part of the value of their entitlements when the enterprise makes an increment on the trust fund.

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