Taiwan Individual Income Tax for Services Provided in Taiwan
National Taxation Bureau of the North Area, Ministry of Finance indicated that, foreigners who have resided in Taiwan for more than 90 days during a taxable year, in accordance with Article 8 of Income Tax Act, have provided labor services in Taiwan. The remuneration obtained by the employer is income derived from Taiwan, and thus shall be declared for income tax along with other income obtained in the territory.
The Bureau further indicated that, foreigners who reside in Taiwan for more than 90 days during a taxable year, except for special circumstances, and who mostly engage in commercial activities or provide labor services for their employers, such as selling goods, investigating the market, purchasing, inspecting goods, providing technical services, etc., are obligated to pay taxes because Taiwan government provides a working environment for labor remuneration and the use of various public facilities during their stay in Taiwan. In addition, according to international taxation practices, the identification of the country of original labor remuneration is based on the place where the labor services are provided.