Foreign individual income tax and the period of residence
For any foreigner having income from sources in the Republic of China (R.O.C.), individual income tax shall be levied on the income derived from such sources in accordance with the Income Tax Act of the R.O.C. Foreign taxpayers can be categorized as“Non-Residents of the R.O.C.” and “Residents of the R.O.C.” based on their length of stay. The different ways for foreigners to file income tax returns are listed below.
(1) “Non-Residents” of the R.O.C.
A. For an individual who stays in the R.O.C. not more than 90 days within a taxable year (January 1st to December 31st), the income derived from sources in the R.O.C. shall be withheld according to the withholding rate (see Article 15) and paid at the respective sources. The taxpayer need not file an income tax return. However, if an individual has income derived from property transaction, occasional trade, interest from mortgages, etc., he/she should declare and pay tax prior to departure.
B. For an individual who stays in the R.O.C. over 90 days but less than 183 days within a taxable year, individual income tax shall be declared and computed according to the withholding rate (see Article 15) on his/her income derived from sources in the R.O.C., including the remunerations derived from abroad for his/her services rendered in the R.O.C.
(2) “Residents” of the R.O.C.
An individual who stays in the R.O.C. for 183 days or longer within a taxable year is regarded as a resident and the individual income tax shall be declared and assessed by a progressive rate (see Article 14) on the amount of his/her net consolidated income (taxable income) which shall be the annual gross consolidated income (including the various incomes derived within the R.O.C. and the remunerations derived outside the R.O.C. for services rendered in the R.O.C.) minus the exemptions and deductions.