A taxpayer shall, within the period from May 1 to May 31 of each year, fill out and file to the tax collection authority-in-charge an annual income tax return declaring therein the items an amounts that make up his gross consolidated income (for an individual ) or the gross profit-seeking income (for a profit-seeking enterprise) for the preceding year together with the tax deductions/exemptions, and/or offsets associated therewith, if any. The taxpayer shall further calculate the amount of income tax actually payable by him / her or it by deducting the provisional income tax payment, the unused withholding tax and the amount of tax credit as specified in the provisions of Paragraph 4, Article 15 from the amount of the income tax payable for the whole year, and shall make payment voluntarily before filing the annual income tax return. However, the withholding tax from the income subject to separate taxation in accordance with the Act shall not be deductible.
A profit-seeking enterprise organized as a sole proprietorship or a partnership shall declare an annual income tax return as per the preceding Paragraph and be exempt from computing and making a tax payment before filing its income tax return; the amount of income of a profit-seeking enterprise shall be included in “Business Income” as defined in Category 1, Paragraph 1 of Article 14, and the consolidated income tax shall be levied in accordance with this Act. However, a sole proprietorship or a partnership recognized as a small-scale profit-seeking enterprise shall not file an annual income tax return; the amount of the profit-seeking enterprise income assessed by the collection authority shall be included in “Business Income” and the consolidated income tax shall be levied in accordance with this Act.
Filing of an annual income tax return shall be exempt for an individual residing in the territory of the Republic of China whose annual gross consolidated income does not exceed the sum of the amount of exemption plus the standard deduction for the current year provided, however, that if an application has been filed for refund of the tax withheld and the tax credit as specified in the provision of Paragraph 4, Article 15, or subject to separated taxation as stipulated in the provision of Paragraph 4, Article 15, the said taxpayer shall still be required to file the annual income tax return.