Taiwan's Non-Residents Warned On Tax Compliance

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

25 February 2015

The National Taxation Bureau of Taipei has disclosed that it is currently assessing a total of 3,253 foreign taxpayers from countries such as the United States, Japan, Hong Kong, Malaysia, and Singapore to ensure their compliance with relevant Taiwanese tax regulations.

Under the Taiwanese tax code, if a non-resident individual stays in the country for more than 90 days during any tax year (January 1 to December 31), the remuneration he or she receives outside of Taiwan for services rendered within the country is deemed to be Taiwan-sourced income. The individual is then required to declare such income and pay the relevant taxes due.

The NTBT added that most foreigners who reside in Taiwan for more than 90 days within a tax year engage in commercial activities or provide services on behalf of their employer(s) – for example, selling or purchasing products, doing local market research, inspecting goods, or rendering technical support services.

The agency urged all foreign taxpayers to file their past due tax returns and make supplementary payments in accordance with Taiwan's Income Tax Act. The tax office will otherwise conduct appropriate collection and penalty procedures where it is found that tax was due. Enforcement measures can include denial of departure by the National Immigration Agency.

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