In a recent case, a Mr. Chen called to inquire whether he needed to file individual income tax return in Taiwan. He is a maintenance engineer who was sent to Taiwan for 4 months in 2020 by an American company, and received a salary from said American company during his time in Taiwan.
The National Taxation Bureau of the Southern Area, Ministry of Finance, states that remuneration for services rendered within the territory of the Republic of China (R.O.C.), provided that this shall not apply to remuneration obtained from an employer without the territory of the R.O.C. by an individual not residing in the R.O.C. but staying in the R.O.C. for a period of not more than 90 days during a taxable year in accordance with Subparagraph 3, Article 8 of the Income Tax Act (the Act), shall be taxable regardless of whether the remuneration was paid by abroad or domestic employer.
The Bureau further expressed that Mr. Chen lived in Taiwan for more than 90 days in 2020, and received remuneration for providing labor services. Therefore, whether the payment was paid by the USA head office or domestic company, it shall be subject to "income from sources in the R.O.C" according to the Act. As such, Mr. Chen has to prepare a valid passport, an Alien Resident Certificate (if holding an ARC), certificate of residence, tax of salary withholding statement and certificate of earnings paid abroad for services performed in the R.O.C. in advance and file his income tax return to the tax authority with jurisdiction over the location of the address given on his ARC.
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Press Release Contact: Ms. Juan, Second Legal Affairs Division