For a taxpayer having any income of the following categories, the tax withholder involved shall withhold tax payable at the time of payment as per the prescribed tax rates and withholding procedures, and pay the tax withheld in accordance with the provisions of Article 92 of this Act:
1.The dividends distributed by a company to an individual not residing in the territory of the Republic of China or a profit-seeking enterprise having its head office outside the territory of the Republic of China; or the surplus profits distributed by a cooperative, other juristic person, partnership, or a wholly-owned organization to its member, investor, partner, or sole investor not residing in the territory of the Republic of China;
2. Salary, interest, rental, commission, royalty, cash award or prize given in a contest or game competition, prizes of a chance winning, retirement pay, severance pay, separation pay, resignation pay, life-time pension, old-age pension not covered by insurance benefits, reward for information or accusation, income from transactions in structured products, and fees for professional practices paid by any organization, institution, school, enterprise, bankruptcy estate, or practitioner of profession, and the income paid to a foreign profit-seeking enterprise having no fixed place of business or business agent within the territory of the Republic of China;
3. Profit-seeking enterprise income derived from operations by a profit-seeking enterprise as provided in Article 25 having its income tax withheld by a business agent or the payer in accordance with the provision of Article 98-1; or
4. Profit-seeking enterprise income derived from business in the Republic of China by a foreign motion picture enterprise which has no branch office in the territory of the Republic of China as provided in Article 26 of this Act.
Where a profit-seeking enterprise organized as a sole proprietorship or a partnership files its annual income tax return according to the provision of Paragraph 2 of Article 71 or its current final report on total business income or income earned from liquidation according to the provision of Paragraph 4 of Article 75, the income tax payable on the surplus profits payable by a sole proprietorship or a partnership to its sole proprietor or partners not residing in the territory of the Republic of China shall be withheld in accordance with prescribed withholding rates by the tax withholder and pay the tax withheld in accordance with the provisions of Article 92 of this Act; and thereafter, Subparagraph 1 in the preceding paragraph of this Article shall not apply when the surplus profits are actually distributed to the sole proprietor or partners of the aforesaid profit-seeking enterprise.
Where a profit-seeking enterprise organized as a sole proprietorship or a partnership in accordance with the preceding Paragraph files the annual income tax return, makes its current final report on total business income or income earned from liquidation in accordance with this Act, requests corrections of the above filing of annual income or final report, or fails to file annual income or make a current final report, and the tax collection authority assesses and determines more business income that will increase the surplus profit of a sole proprietor or a partner of the profit-seeking enterprise, the tax withholder shall withhold the tax payable and pay the tax withheld on the above increased amount of the surplus that should be attributed to the sole proprietors or partners not residing in the territory of the Republic of China in accordance with Article 92 of this Act within 30 days from receipt of the notice of tax assessment.
The withholding rates and withholding procedures applicable to the various kinds of income as prescribed in the preceding three Paragraphs of this Article shall be drafted and established by the Ministry of Finance and submitted to the Executive Yuan for approval.