The National Taxation Bureau of the Southern Area, Ministry of Finance stated that if the aggregate overseas income of a tax household, such as income from sources derived outside the Republic of China, as well as from Hong Kong and Macao, reaches NT$1 million in a year, the overseas income shall be included in the calculation of the amount of basic income. The aforementioned sources of overseas income shall be added to the net taxable income calculated in accordance with the Income Tax Act, along with other items that shall be included in the basic income calculation. If the amount of total basic income exceeds the tax exemption threshold (NT$7.5 million in 2024), the income basic tax shall be filed and paid in accordance with the Income Basic Tax Act.

The Bureau further expressed that overseas incomes are not within the scope of income data for reference provided by the National Taxation Bureau. Such incomes are not listed in the income list that people download via using their certificates or inquire at the National Taxation Bureau. Taxpayers should proactively and truthfully declare their basic income to avoid omissions when filing their taxes.

The Bureau provides the following example. In 2022,  Mr. A received NT$10 million of income from property transactions from investing in overseas financial products. He should declare this income and pay tax in accordance with the Income Basic Tax Act. However, Mr. A failed to declare his overseas income when filing his annual income tax return. He reported his taxes based solely on the income data downloaded via his certificate. When the Bureau later discovered that Mr. A had omitted the overseas income from property transaction, Mr. A had to pay an additional basic tax of NT$0.8 million as well as a penalty.  

The Bureau would like to remind taxpayers that those who purchase overseas financial products through domestic financial institutions should pay close attention to whether they have received overseas income. Taxpayers are urged to actively make inquiries with their financial institutions and report their income truthfully to avoid penalties for under-reporting.

Press Release Contact: Ms. Lin
Legal Affairs Division
TEL: 06-2223111 ext.8126