Dajyh Office, National Taxation Bureau of the Central Area, Ministry of Finance stated: When payments of taxable income are made, tax withholders must withhold income tax on the basis of Article 88 of the Income Tax Act and the Standards of Withholding Rates for Various Incomes.
There are different withholding tax rates for residents and non-residents of the R.O.C. An individual is regarded as a tax resident if one of the following conditions is met: 1. An individual who has registered residence in the Household Registration Office and stays in the R.O.C. for 31 days or more in a calendar year or stays in the R.O.C. for 1 day to 30 days in a calendar year, and the center of vital interests for personal and economic relations is in the R.O.C., or 2. An individual who has no registered residence in the R.O.C. but stays for 183 days or longer. Individuals who fail to meet the above-mentioned categories are regarded as non-resident.
Tax withholders shall identify the resident or non-resident status of the income recipient and withhold in accordance with the Standards of Withholding Rates for Various Incomes. For example, the total tax on monthly salary payment for a person regarded as a resident shall be withheld either by following the stipulation of “The Regulations Governing the Withholding of Tax on Wages” or at 5% of the payment. However, a tax withholder shall withhold 18% of the payment on salary paid to non-residents. In the case that the monthly salaries in full amount are equal to or lower than one and a half times of the monthly baseline salary as assessed by the Executive Yuan, the withholding tax rate is 6% for the non-resident recipient.
If taxpayers have any questions, please make a free call at 0800-000321. We are pleased to be at your service. (Released by Individual Income Tax Section of Dajyh Office. Contact Ms. Wang, Mei-Hui at phone number: 04-22612821 ext. 208).