Filling of Annual Income Tax Return

A taxpayer shall, within the period from May 1 to May 31of each year, fill out and file to the local tax collection authority and annual income return declaring items and amounts that make up his gross consolidated income (for an individual person) or the gross profit-seeking income (for a profit-seeking enterprise) for the preceding year together with the tax deductions/exemptions, and/or offsets associated therewith, if any. The taxpayer shall further calculate the amount of income tax actually payable by him/it by deducting from the amount of income tax payable for the whole year the provisional income tax payment, the unpaid withholding and the amount of credit tax, and shall make payment voluntarily of the same before filing the annual income tax return. However, the withholding tax from the income of interest accrued on short-term papers, and withholding tax from the income of interest accrued on short-term papers, and the credit tax included in the total amount of dividends or earnings paid to a profit-seeking enterprise shall not be deductible.

Filing of an annual income tax return shall be exempt for an individual residing in the territory of the Republic of China whose annual gross consolidated income does not exceed the sum of the amount of exemption plus the standard deduction for the current year provided, however, that if an application has been filed for refund of the tax withheld and the tax credit, the said taxpayer shall still be required to file the annual income tax return.