Income tax

Q1: What is the definition of “Taxable Year”?

A1: A taxable year is from January 1 to December 31 in one year.

Q2: How to be the income from salaries and wages withheld?

A2: Residents of the Republic of China:

The tax withholders should be withheld in accordance with the following rules at the time of salaries and wages payment:

First: In accordance with “The Regulations Governing the Withholding of Tax on Wages”, tax is withheld in accordance with the table( filling in the Dependents Table) and the threshold for applying withholding tax in accordance with the Salary Withholding Tax Table is above NT84501 in 107 taxable year.

Second: 5% of the total monthly payment is withheld as tax; in other words, the wage exceeds NT40020.

(Withholding income tax= the total income × withholding rate >NT2000) However, a salary that is not paid monthly (like year-end bonus) is withheld 5% of the total payment, and the payment is exempted from the tax being withheld if each payment isn’t exceed NT84501.

Non- residents of the Republic of China:

Income from salaries and wages: For the salaries not exceeding 1.5 times the monthly baseline salary as assessed by the Executive Yuan, 6％ of the payment is withheld as income tax. For salaries exceeding 1.5 times, 18% of the payment is withheld as income tax.

Q3: What is the difference between “residents of Republic of China” and “non-residents of Republic of China” regarding the Income Tax Act of the ROC?

A3: The following two categories of individuals are regarded as “residents of the Republic of China”:First, an individual who has registered residence in the Household Registration Office and frequently stays in the ROC is regarded as a ROC resident, regardless whether his or her stay in the ROC is less than 183 days.
Second, an individual who has no registered residence in the ROC but stays for 183 days or longer is regarded as a ROC resident.
Individuals not falling into the above-mentioned two categories are regarded as “non-residents of Republic of China”.

Q4: What is the difference between “Speech fee” and “Lecturing pay”?

A4:

Speech fee (professional practice, format9B): The fee is paid for hiring experts and scholars to have lectures for unlimited people in public gathering places (indicate location), and attach a speech posters, please.

Lecturing or seminar fee (format 50): The fee is paid for the activity like training courses, workshops, seminar, and lecture and so on. They are scheduled courses in class, even if the schedule of courses is named in lectures, but they are like classes because they are taught in the class occasion, so they are still salary income.

Q5: How to be the income from professional practice withheld?

A5:

As residents of Republic of China:

First: Any other person who makes a living with craftsmanship or art like architect, lawyer, technician, physician, artisan and individual performing fee will be withheld if the payment exceeds NT20010.( Withholding income tax>NT2001)

Second: (format 9B) Individual income derived from written articles, copyright books, musical compositions, musical productions, dramas, cartoons, or as remuneration for speeches and lectures on an hourly basis and all income from them will be withheld 10% if the amount exceeds NT20010.

Other various incomes refer to: the website of office of general affairs’ cashier section/ regulations/ withholding rates for various incomes table.

Non-residents of Republic of China:

First, The income that derived from written articles and lectures (format 9B) would be withheld 20% when the income exceeds NT5001; the income doesn’t exceed NT5000 then the income is exempted from the tax being withheld, but the person still have to fill in Withholding ＆ Non-Withholding Tax Statement.

Second, when paying income to non-residents of Republic of China, organizer pays to cashier section with 1. original receipt 2. withholding statement3. the copy of passport or resident certificate 4 withholding tax( cash benefit) and files the withholding tax within three days from the date of payday.

Third, Penalties: When paying income to non-residents of Republic of China, organizer doesn’t file the withholding tax to National Tax Administration within ten days from the date of withholding in accordance with Income Tax Act, then organizer is responsible for the penalties.

Forth, if project-Appointed postdoctoral research fellows will depart after finishing project, the organizer would notifies cashier section to file the annual income tax return beforehand. Then organizer is able to receive withholding statement.