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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:
Enforcement Rules of the Income Tax Act
Article 43-4
Content:
Any foreign profit-seeking enterprise established according to foreign law but with a place of effective management in the Republic of China shall be deemed as a profit-seeking enterprise having its head office within the territory of the Republic of China, and shall be subject to profit-seeking enterprise income tax in accordance with Income Tax Act and other relevant laws. In case of violation, the foreign profit-seeking enterprise shall be subject to the Income Tax Act and other relevant laws.


A foreign profit-seeking enterprise specified in the preceding Paragraph shall be deemed as a profit-seeking enterprise established according to the Republic of China’s laws, and recognize the payment of various kinds of income from sources in the Republic of China in accordance with Article 8. The tax withholders shall withhold the income tax from various income payments, and issue withholding certificates, dividend vouchers, and other relevant certificates in accordance with Income Tax Act and other relevant laws. In case of violation, the foreign profit-seeking enterprise shall be subject to the Income Tax Act and other relevant laws. However, if the foreign profit-seeking enterprise distributes surplus earnings not earned in the year applying to profit-seeking enterprise income tax in accordance with Paragraph 1, the surplus earnings are not from sources in the Republic of China in accordance with Article 8.


The term "A foreign profit-seeking enterprise with a place of effective management in the Republic of China" as mentioned in Paragraph 1 refers that it is in accordance with the following provisions:

1.The decision maker who makes significant decisions in business management, financial management, and personnel management is an individual resident in the Republic of China or a profit-seeking enterprise having its head office within the territory of the Republic of China, or the place where the significant decisions are made is in the Republic of China.

2.Financial statements, records of accounting books, minutes of meetings of the Board of Directors or minutes of meetings of the shareholders prepared or stored in the territory of the Republic of China.

3.Major business activities carried out in the Republic of China.

The regulations governing the measures applying to levying income tax, withholding tax, and issuing certificates; the standard and procedure of identifying place of management; evidential documents; and other requirements specified in the preceding three Paragraphs shall be prescribed by the Ministry of Finance.
Visitor:2  Update:2018-04-20

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