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Taxation Administration,Ministry of Finance,R.O.C.Law Source Retrieving System of Taxation Laws and Regulations

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Tax Related Laws & Regulations

Tax Act:
Income Tax Act
Article 3-2
Content:
Where the settlor of a trust deed is a profit-seeking enterprise and the beneficiary of the whole or any part of the trust benefit designated therein is not the settlor once the trust deed takes effect, then the said beneficiary shall include the value of his/her/its entitlement to such trust benefit in the aggregate amount of his/her/its annual income in the year the trust deed takes effect for assessment of income tax under this Act.
In the case of a trust deed referred to in the preceding Paragraph wherein the settlor is named as the beneficiary of the whole or any part of the trust benefit, if the beneficiary is replaced by a person other than the settlor during the term of such trust relationship, then the said new beneficiary shall include the value of his/her/its entitlement to such trust benefit in the aggregate amount of his/her/its annual income in the year the beneficiary change takes effect for assessment of income tax under this Act.
In the case of a trust deed wherein the settlor is a profit-seeking enterprise, if the trust property is added during the term of such trust relationship, so as to increase the right of a person other than the settlor to enjoy the trust benefit, then the said person shall include the increased portion of the value of his/her/its entitlement to such trust benefit in the aggregate amount of his/her/its annual income in the year the trust property increase takes effect for assessment of income tax under this Act.
Where the beneficiary or beneficiaries of a trust deed set forth in any of the preceding three Paragraphs are unspecified or not in existence yet, the trustee shall be considered as the taxpayer for that trust deed who shall declare and pay the tax for the value of the beneficiary's entitlement to such trust benefit in the year the trust deed takes effect, the beneficiary change takes effect, or the trust property increase takes effect. The tax thereof shall be calculated in accordance with the prescribed withholding tax rate within the time limit stipulated in Article 71 of this Act. The aforementioned withholding tax rate shall be formulated by the Ministry of Finance and submitted to the Executive Yuan for its approval and promulgation.
Visitor:9  Update:2022-02-15

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