National Taxation Bureau of Taipei, Ministry of Finance(hereinafter referred to as “NTBT”) expressed that if a foreigner stays in the Republic of China(R.O.C.) for more than 90 days during a taxable year, the remuneration he/she receives from his/her employer(s) outside of the R.O.C. for services rendered within the territory of the R.O.C. shall also be considered as R.O.C.-sourced income, and this income shall be combined with the domestic income to calculate the gross consolidated income for filing his/her individual income tax return and pay tax.
NTBT explained that the computation of a foreigner's period of residence in the R.O.C. is based on the dates stamped on his/her passport or the Certificate of Entry and Exit Dates issued by the National Immigration Agency, Ministry of the Interior. If a foreigner enters and exits this country a number of times within a taxable year, a full year from January 1st to December 31st, the period of residence shall be the total number of accumulated days (excluding the date of arrival and including the date of departure).
NTBT further indicated that if a foreigner, who remains in the R.O.C. for not more than 90 days within one taxable year, the income derived from sources in the R.O.C. shall be withheld in accordance with the withholding rate and paid at the respective sources, or the foreigner may on his/her own initiative file the individual income tax return prior to departure. Under this circumstances, the income tax shall be exempted for the income derived from abroad for the serviced rendered in the R.O.C. On the contrary, a foreigner who remains in the R.O.C for more than 90 days within one taxable year, the remuneration received from overseas employer for the services rendered in the R.O.C. shall be considered as R.O.C.-sourced income, and he/she should declare this income while filing his/her individual income tax return. The foreign taxpayer shall provide a document about the income paid by an employer outside the territory of the R.O.C. that is verified by the foreign local tax authorities, notary public, or certified public accountant (CPA) (a photocopy of the license of the notary public or CPA should also be attached) as an evidence, once filing income tax return.
NTBT specially called on that, foreigner taxpayers who stay in Taiwan over 90 days within a taxable year and receive income from abroad for service rendered in Taiwan shall comply with the Income Tax Act and voluntarily file such income in order to avoid the supplemental tax payment and punishment.
(Contact: Ms. Lin, Section Head of the Foreign Taxpayers Section, Services Division; Tel:23113711, ext.1130)