For any alien having income from sources in the Republic of China (R.O.C.), individual income tax shall be levied on the income derived from such sources in accordance with the Income Tax Act of the R.O.C. Alien taxpayers can be categorized as “ Non-Residents of the R.O.C. ” and “ Residents of the R.O.C. ” based on their length of stay.
The different ways for aliens to tax withholding and declare are listed below. Please refer to the relevant regulations “ National Taxation Bureau of Taipei, Ministry of Finance ”.
※ Non-Residents or Residents? (The days of stay in Taiwan (Republic of China) within a taxable year (Jan. 1st to Dec. 31st)
Not more than 90 days ：
- The income derived from sources in the R.O.C. shall be withheld according to the withholding rate ( tax rate on salaries is 18% ) and paid at the respective sources. The taxpayer need not file an income tax return. However, if an individual has income derived from property transaction, occasional trade, interest from mortgages, etc., The taxpayer should declare and pay tax prior to departure.
- The income tax shall be exempted for income derived from employer(s) outside the R.O.C.
More than 90 days but less than 183 days：
- The income derived from sources in the R.O.C. shall be withheld according to the withholding rate ( tax rate on salaries is 18% ) and paid at the respective sources. The taxpayer need not file an income tax return.
- Income derived from property transaction, occasional trade, interest from mortgages, etc. and from employer(s) outside the R.O.C. s should declare and pay tax prior to departure.
Residents：More than 183 days
- The individual income tax shall be declared and assessed by a progressive rate on the amount of his/her net consolidated income ( taxable income ) which shall be the annual gross consolidated income ( including the various incomes derived within the R.O.C. and the remunerations derived outside the R.O.C. for services rendered in the R.O.C. ) minus the exemptions, deductions, and basic living expense difference.
- The taxpayer shall file the annual income tax return of the previous year from May 1st to May 31st of the current year ( if May 31st falls on Saturday, Sunday, a national holiday, or any other holiday, the due day extends to the next workday ).
- Any individual who intends to leave the territory of the R.O.C. in the interim of the year and will not return within the same taxable year shall file the taxpayer income tax return around 10 days before the taxpayer departure.
- The taxpayer stays approaches and over 183 days within a taxable year, the taxpayer can bring faculty & staff ID card, passport ( or Certificate of Entry and Exit Dates ), and residence certificate to the Division of Cashier, where we will help change to resident’s withholding tax rate. Salary withholding tax rate can choose to deduct 5% based on the total monthly payment or declare by range of " Salary Income-Withholding-Tax-Table ".
- The deducted tax will be listed as a deduction from the taxable amount in the consolidated income tax settlement declaration.