For individuals not residing within the territory of the Republic of China （hereinafter referred to as non-residents） but who have earned income within the territory of the Republic of China, the tax withholder shall withhold the income tax payable in accordance with prescribed withholding rates.

The National Taxation Bureau of Kaohsiung, Ministry of Finance explained that individuals residing within the Republic of China（hereinafter referred to as the residents）stated in Article 7 of the Income Tax Act and Directive Tai-Cai-Shui-Zi No. 10104610410 issued by the Ministry of Finance on September 27, 2012, refer to:
    1. Individuals who have a registered residence in the Republic of China during the taxable year and are in any of the following circumstances:
        （1）Residing within the territory of the Republic of China for more than 31 days.
       （2）Residing within the territory of the Republic of China for more than 1 day and less than 31 days, and having the center of their lives and economy located within the territory of the Republic of China.
    2. Individuals who do not have a domicile in the Republic of China but reside within the territory of the Republic of China for more than 183 days.

The Bureau further explained that individuals who do not meet the aforementioned definition of residency are considered non-residents. When a non-resident earns income subject to income tax as prescribed in Article 88 of the Income Tax Act, the tax withholder shall withhold the income tax payable in accordance with prescribed withholding rates at the time of payment of said income. For example, the landlord, Party A, who has been living overseas for more than two years without entering the Republic of China, has moved his registered residence out of the Republic of China. The tenant, Party B, a business entity, paid NT$50,000 in rent to Party A on the 5th of every month in 2023. Since Party A is a non-resident of the Republic of China, the tax withholder shall withhold the income tax payable in accordance with the withholding rate prescribed in Subparagraph 5, Paragraph 1, Article 3 of the Standards of Withholding Rates for Various Incomes. That is, 20% of the rent, which amounts to NT$10,000, shall be withheld as tax. The tax withholder shall then process the payment of this tax amount and submit withholding statements to the national treasury within 10 days after the rent payment（i.e., before the 14th of each month） in accordance with Paragraph 2 of Article 92 of the Income Tax Act.

The Bureau reminds tax withholders to pay attention to whether the income earner is a resident or non-resident to avoid any negative impact on their rights and interests due to mistakes in tax withholding and declaration. "Tax withholders can also make online declarations using “The e-Filing and Tax Payment Service of the Ministry of Finance,” which is rapid and convenient.  If you have any questions, you are welcome to dial our free service hotline 0800-000-321 for more information or go to the Bureau’s website （https://www.ntbk.gov.tw） to make an inquiry online through the national tax-smart customer service “National Tax Assistant.”

Provided by: First Individual Income Tax Section
Contact person: Section Chief, Chang Chun.   Phone number: (07)7256600 ext. 7270
Contributor: Ms. Lee.                                　      Phone number: (07)7256600 ext.7222