Applications for Amendment, Check or Tax Return

In the event where any of the documents issued by a tax collection authorities regarding taxation is refused or rejected by the person to whom the service of which is attempted, said tax collection authorities may mail the document to the autonomous or police authorities of the place of service, and make a written service notice and stick the same on the door of the domicile, residence, business office or business place of the person to whom the service thereof is attempted so as to complete the due service of process.

In the event that the service of a document cannot be effected due to the fact that the whereabouts of the person to whom the service thereof is attempted is unknown, the tax collection authorities shall first consult the local household registration authorities to verify the address of the person to whom the service is attempted. If such effort fails, the document for service shall be kept by the tax collection authorities. In addition, the tax collection authorities shall post the document on its bulletin board and publish a notice in the newspaper(s) informing the person to whom the service thereof is attempted to take the delivery of the document at any time.

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Regulations on Overdue Payment in Tax Law

According to Article 108-1 of Regulations Governing Audit of Profit-Seeking Business Income Tax, expense or loss payable unpaid two years overdue must be transferred into title of “Other Revenues” and filed as “Non-Operating Expenses” at final payment. Such adjusted transfer shall be exempt from penalty in accordance with Article 110 of Income Tax Act.

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Penalty of Tax Arrears

According National Tax Administration of Taiwan, if a taxpayer fails to make a due tax payment, following penalties must be made by the tax collection authority:

1. Tax authority may notify the government authority concerned to prohibit said taxpayer from transferring or creating other rights over the property of the taxpayer at a value equivalent to the amount of the outstanding tax payable.

2. If the overdue delinquent tax payable reaches a certain amount, the judicial authority may request the competent authority to restrict said taxpayer from exiting Taiwan.

3. If the taxpayer fails to make timely tax payment, the tax collection authority shall forward the case to the court for compulsory execution.

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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.

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