Change of Alien Tax Payment

MOF Administrative Order issued on Aug. 13, 2008 stated that the alien stays in Taiwan (R.O.C.) less than 183 days must be considered as an “individual not residing in the Republic of China” and the individual income tax must be declared and withheld at source.

According to past administrative orders, the alien who filed Individual Income Tax Return in previous taxable year as a resident in Taiwan and did not depart until the next year shall file Individual Income Tax Return as “individual residing in the Republic of China” whether or not he has stayed in Taiwan for over 183 in the next year.

However, according to newly released administrative order, no matter what status the alien used to file income tax return in previous taxable year, income tax at the rate of 20% must be withheld within 10 days after he receives his payment each month during the period within first 183 days of the next year staying in Taiwan. After he has stayed in Taiwan for over 183 days, he can file tax income return as a resident.