Local Citizens with Dual Nationality Deriving Income from Sources in the R.O.C. by Using Different Identities Shall Combine Their Income in the Declaration
For example, Mr. A holds dual nationality. He was hired as a General Manager of Company X by using the R.O.C. nationality in 2016, meanwhile, and he was also hired as a consultant in the Taiwan branch office of foreign Company Y by using his foreign nationality as Mr. B. Company X and the Taiwan branch office of foreign Company Y reported withholding and non-withholding tax statement by using Mr. A's R.O.C. ID number and Mr. B's ARC number separately. After investigating, NTBT found out that Mr. A and Mr. B are the same taxpayer. Mr. A only declared the income from Company X, but he did not declare the income from the Taiwan branch office of foreign Company Y in his individual income tax return of 2016. Therefore, NTBT accessed the income tax by combining the income of Company X and the Taiwan branch office of foreign Company Y. In addition, Mr. A was subject to a fine.
NTBT reminds that a local citizen with dual nationality shall combine any sources of income to calculate the income tax payable regardless whether the income are obtained from local nationality or foreign nationality; if anyone declares the income tax return separately by using two identities, once it is found by the tax authority, he/she shall be subject to pay back the tax due and a fine.
(Contact person: Third Examination Division Head Mr. Tsai, TEL: 2311-3711, ext. 1760)