(桃園訊) The National Tax Administration of Northern Taiwan Province, Ministry of Finance indicates that for any profit-seeking enterprise having its head office without the territory of the Republic of China but having income derived from sources in the Republic of China, profit-seeking enterprise income tax shall be levied on its profit-seeking enterprise income derived within the territory of the Republic of China.

The Tax Administration furthermore indicates that for any profit-seeking enterprise having its head office without the territory of the Republic of China having no permanent establishment or business agent within the territory of the Republic of China, in the event of having income within the territory of the Republic of China as provided in Article 88, the income reporting provisions under Article 71 shall not apply and the tax withholder shall withhold the income tax payable in accordance with prescribed withholding rates. In the case that the taxpayer has income which does not fall within the withholding scope as provided in Article 88, and is going to leave the territory of the Republic of China prior to the time limit prescribed for filing income tax return in the taxable year, he or she shall file a tax return with the local collection authority-in-charge prior to his or her departure and make tax payment according to the prescribed tax rates, and in the case that he or she does not leave within the time limit prescribed for the filing of an income tax return in the taxable year, he or she shall file a tax return and make tax payment in accordance with the regulations concerned.

In the case of a profit-seeking enterprise with no permanent establishment but having a business agent in the territory of the Republic of China, except where computation of income is made in accordance with Article 25 and 26 where income tax is withheld and paid in accordance with the provisions concerned, the business agent concerned shall be responsible for the filing of an income tax return with the local collection authority-in-charge and for payment of income tax in accordance with the provisions of this Act.

The Tax Administration would like to remind taxpayers that for any profit-seeking enterprise having its head office without the territory of the Republic of China without any fixed place of business within the territory of the Republic of China and business agent that accrues income not within the scope of withholding under Article 88 of the Act and is unable to conduct the filing by itself, such enterprise shall apply to the tax authority for approval and appoint an individual residing within the territory of the Republic of China or a profit-seeking enterprise with a fixed place of business to file the tax return as an agent.