Where a beneficiary prescribed in Paragraph 1 to 3 of Article 3-2 of the ITA is a profit-seeking enterprise without any fixed place of business and business agent within the territory of the Republic of China, or a juristic person, organization, or other institution of the Mainland Area without any fixed place of business and business agent in the Taiwan Area in accordance with Paragraph 4 of Article 25 of the AGR, the settler shall deduct 20% of the value or the increased portion of the value of the beneficiary's entitlement to such trust benefit when the trust deed takes effect, the beneficiary change takes effect, or the trust property increase takes effect.
If the beneficiary prescribed in the preceding paragraph is an individual not residing within the territory of the Republic of China or an individual of the Mainland Area residing and staying in the Taiwan Area for less than 183 days in a taxable year in accordance with Paragraph 4 of Article 25 of the AGR, he or she shall declare and pay the tax in accordance with a withholding rate of 20% for the value or the increased portion of 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.