Tax Withholding of Alien Employee

According to Income Tax Act, a non-resident individual or a profit-seeking enterprise without permanent establishment in the Republic of China but having income as enumerated under Article 88, the tax withholder, shall within ten days from the date of withholding, effect payment to the national treasury of all the taxes withheld, make out withholding certificates and submit them to the local collection authority-in-charge for verification.

An alien employee fails to fill out the tax-withholding certificates truthfully within the time limit prescribed shall be instructed to make a supplemental report and be subject to a fine at the rate of 20% of the tax amount withheld. The amount of the fine, however, shall not exceed NT$ 22,500 or be less than NT$ 1,500. If the report is filed after the deadline as a result of the tax withholder’s own initiative, the fine shall be reduced by 50%. The tax withholder, who is instructed to make a supplemental report on the tax withholding certificates within a time limit prescribed by the tax authority but fails to do so, shall be subject to a fine in an amount equal to three times the amount of the tax withheld. It is not, however, to exceed NT$ 45,000 or be less than NT$ 3,000.