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Taiwan's Executive Yuan Approves Tax Reforms

by Mary Swire, Tax-News.com, Hong Kong

23 October 2017


Taiwan's Executive Yuan has approved tax reform proposals, which were put before lawmakers in September, Taiwan's Ministry of Finance has said.

Under the bill, which must now be agreed by the full Legislative Yuan, corporate income tax will be hiked to 20 percent from 17 percent. Meanwhile the additional tax on undistributed profits will be lowered from 10 percent to five percent.

The top personal income tax rate will be lowered to 40 percent from 45 percent, and tax concessions for workers and persons with disabilities will be enhanced.

The reforms will hike the withholding tax rate on dividend payments to non-resident companies and individuals to 21 percent from 20 percent. With regard to the tax treatment of individual dividend income, taxpayers can choose to treat all dividend income as normal income and deduct an amount equal to 8.5 percent of the dividend income amount, up to a maximum of TWD80,000 (USD2,645). Alternately, they may opt for a flat rate 26 percent rate of tax to be imposed on the dividend income.

TAGS: individuals | Finance | tax | investment | law | corporation tax | Taiwan | legislation | withholding tax | tax reform | Tax

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