 |
Aug 2008
|
In Brief:
The Ministry of Finance ("MOF") has recently released a ruling on 13 August 2008, which modifies and overwrites previous tax ruling on the Taiwan individual income tax filing obligation of an individual who does not have domicile in Taiwan and stays less than 183 days in a calendar year in Taiwan. |
Background
According to the current Taiwan Income Tax Law, an individual who has domicile in Taiwan, or who has no domicile but stays in Taiwan for an accumulated length of 183 days or more ("Resident") is to file an Annual Taiwan individual income tax return. On the other hand, an individual who does not have domicile ("Non-Resident"), should follow Paragraph 1, Article 73 of Taiwan Income Tax Law, to have their income tax withheld and paid at the respective sources or file a tax return before the filing deadline.
Changes
-
Effective as of 13 August 2008 ruling, expatriate who does not have domicile in Taiwan, and have stayed in Taiwan for an accumulated length of less than 183 days in a calendar year, should follow Paragraph 3, Article 7 of Taiwan Income Tax Law - individual who is a non-resident of Taiwan, is to file his/her Taiwan tax return according to Paragraph 1, Article 73 of Taiwan Income Tax Law.
-
Due to inconsistency with the above regulation, the Ministry of Finance has indicated that Tai-Tsai-Sui-7539474 of 2 April 1986, which stated that a Resident individual who has filed an Annual Taiwan individual income tax return in the prior year, whether or not he/she has stayed in Taiwan for an accumulated length of 183 days in the departing year, is to file a departure tax return as a Resident, is to be abolished. In addition, sections 1-3 of Tai-Tsai-Sui-30456 of 20 January 1978, in supplement to Article 7 of 30 January 1988, regarding the tax regulation of expatriate who has Taiwan source income in 1976 and 1977, is to be deleted. |
|
