The withholding/non-withholding rules for payments made by an enterprise in Taiwan as the withholding agent, e.g. the responsible person of a subsidiary, branch or representative office of a foreign company, are as follows:
| Item | Withholding Tax Rates | |
|---|---|---|
| Income Category | Taxpayer Status | |
| Taiwan resident, profit-seeking enterprise with a fix place of business in Taiwan (Note 1) | Non-Taiwan resident, profit-seeking enterprise without a fix place of business in Taiwan (Note 2) | |
Dividend |
|
21% |
| Professional fees | 10% | 20% (for individual income derived from written articles, copyrighted books, etc. that do not exceed NT$5,000 for each payment, not applicable) |
Salaries and wages |
|
|
Interests |
10% |
|
| Rental income | 10% | 20% |
| Royalty | 10% | 20% |
Contest awards or lottery winnings |
|
|
| Pension income | 6% on the payment after deducting certain exempted income. | 18% on the payment after deducting certain exempted income. |
Other income |
|
|
Capital gain(Note 3) |
No withholding applicable (report the income by filing tax return) | Report the income and it is taxed at 20%. |
| Foreign enterprises engaging in international transportation, construction contract, machinery or equipment rental or rendering technical services, etc. which has obtained government approval to calculate its taxable income based on Article 25 of the Income Tax Act | － |
|
| Foreign motion picture company | － |
|
Note 1: Including PRC resident who stayed in Taiwan for 183 days or more in a tax year, and PRC enterprise, association or other institution with a fixed place of business in Taiwan.
Note 2: Including PRC resident who stayed in Taiwan for less than 183 days in a tax year, and PRC enterprise, association or other institution without a fixed place of business in Taiwan.
Note 3: Taxpayers who sales house or land apply for the Income Tax on House and Land Transactions shall file a tax return and make tax payment accordingly.
Note 4: Article 26 of “the Income Tax Act” provides that in the case of a motion picture enterprise outside of the territory of the Republic of China which has no branch office inside the territory of the Republic of China, fifty percent of the revenue from the lease of motion pictures through agents shall be deemed as income within the territory of the Republic of China. The withholding rate shall be 20%.
For income listed under Article 2 of the Standards of Withholding Rates for Various Income derived by a Taiwan resident, the withholding agent does not need to withhold the tax while the tax to be withheld is NTD 2,000 or less. However, for categories of income below which are taxed separately from those reported in the annual income tax return, tax should still be withheld:
For payments of the above categories made to the same taxpayer with a total of NTD 1,000 or less in a tax year, the withholding agent is not required to file the non-withholding report.
Starting from 2016, for income listed under Article 2 of the Standards of Withholding Rates for Various Income derived by a profit-seeking enterprise with a fix place of business in Taiwan, the withholding agent does not need to withhold the tax while the tax to be withheld is NTD 2,000 or less. However, for categories of income below, tax should still be withheld:
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