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Taiwan Individual Income Tax Q&A 25

Q: How to withhold the income from retirement or leave in Taiwan?
A: For authorities, organizations, business entities or performing businesses, according to the Income Tax Act Article 14 Paragraph 1 Category 9, income of retirement given to Taiwan individual resident, 6% shall be deducted from the balance after deducting the fixed tax exemption amount from the payment amount. For income given to non-Taiwan resident, 18% of the balance of the benefits after deducting the fixed tax exemption amount should be deducted.

Q: Who is the tax withholder of retirement income for Taiwan military, public and educational (political) person?
A: When government authorities paying for retirement income, the head of the withhold unit of the “paying unit” should be the tax withholder and withhold according to law.

Q: What are the documents that should be attached in manual declaration of various income withhold statement and dividends statement?
A: The documents should be attached are:
1. Approved stub of the withhold statement.
2. Declaration form of various income withhold and withhold exemption statement.
3. Approved stub of dividends statement.
4. Declaration form of dividends statement.

Q: How to declare the withholding tax when a Taiwan company’s headquarter and branch or office are in different cities? How to declare for the withholding statement?
A: For profit-making enterprises with headquarter and branch located in different cities, when the branch pays various types of income, the headquarter can use the payment statement printed by the regional office of the National Taxation Bureau where the branch is located to fill in the branch’s withholding tax. Filled with the name of branch, uniform number of the withholding unit, address and pay to the bank where the headquarter is located. When the year ends, the headquarter and the branch can fill in declaration form of various income separately. The withhold statement should be submitted to the authorities where the headquarter located.

Q: What should the withhold unit do if it loses the withhold payment slip of salary or other income?
A: The withhold unit can apply for prove of withholding payment to the National Taxation Bureau’s regional office with the company representative’s stamp.