When an individual residing within the territory of the Republic of China derives income as prescribed in Article 2, and the tax to be withheld and paid each time by the tax withholder does not exceed NT$2,000, the tax is exempted from being withheld. However, the following income subject to separate taxation in accordance with the ITA will still be withheld and paid according to the pertinent rules:
1. Interest from the portion of the pecuniary amount realized by short-term commercial papers at their maturity in excess of the selling price at their initial issuance.
2. Interest distributed from beneficiary securities or asset-backed securities issued in accordance with the Financial Asset Securitization Act or the Real Estate Securitization Act.
3. Interest on government bonds, corporate bonds, or financial bonds.
4. Interest derived from repo (RP/RS) trade whereby a taxpayer purchases securities or short-term commercial papers as described above in Subparagraphs 1 to 3 in this paragraph shall be the net amount of the sale price at their maturity in excess of the original purchase price.
5. A prize won in a lottery held under government auspices.
6. Payment of reward for information provider or denouncement of tax evasion cases.
7. Income from transactions in structured products between taxpayers and securities firms or banks.
Where an individual of the Mainland Area residing and staying in the Taiwan Area for at least 183 days in a taxable year in accordance with Paragraph 2 of Article 25 of the AGR derives income as prescribed in Article 2, shall be withheld as applicable under the preceding paragraph of this Article.
Where the annual income as prescribed in the preceding two paragraphs paid to a taxpayer does not exceed NT$1,000, the withholder is not required to file a withholding report to the tax collecting authority-in-charge in accordance with Paragraph 3 of Article 89 of the ITA.