Foreign Taxpayers with ROC -Sourced Income Shall File and Pay the Individual Income Tax in Accordance with the Income Tax Act

  National Taxation Bureau of Taipei, Ministry of Finance (NTBT) indicates, if foreign taxpayers who have income from sources in the Republic of China (R.O.C.) as cited under the Income Tax Act Article 8 shall, depending on their time of stay in Taiwan in a taxable year (from January 1 to December 31), declare the individual income tax returns and pay the tax.   NTBT explains, if foreign taxpayers receive income from the R.O.C. with the day count of staying in Taiwan for less than 183 days in a taxable year, the tax withholders should withhold the tax from the income. But if foreign taxpayers receive income beyond the withholding scope, i.e. foreign taxpayers staying in Taiwan over 90 days get the remuneration received from their employer(s) outside of the R.O.C. for services rendered within the territory of R.O.C., the income from the property transactions realized from the sales of building, the income from leasing property for personal use, the other income from exercising employee stock options and the like, shall file the individual income tax return and make tax payment prior to their departing from the Taiwan, or in case they do not leave Taiwan before the time limit prescribed for filing income tax return in the taxable year, they shall file the individual income tax returns and make tax payment in accordance with the regulations concerned. Those taxpayers staying in Taiwan more than 183 days and also reaching the tax threshold in the tax year shall fill out the foreign individual income tax return form prior to May 31 of the following year to declare their previous year’s individual income tax returns to the tax authority with jurisdiction over the location of the address given on their Alien Resident Cards (ARC). However, when foreign taxpayers are going to leave Taiwan, shall file their annual income tax returns before their departure.   NTBT reminds, to uphold tax equity, if the foreign taxpayers fail to declare the individual income tax return and pay the tax based on the regulations, please file voluntary supplementary declarations and also pay their tax retroactively immediately, preventing from the tax authority assessment, investigation, tax penalties, and outbound restriction, resulting in damage of their rights. (Contact: Ms. Lin, Section Head of the Foreign Taxpayers Section, Services Division; Tel: 2311-3711, Ext. 1130)