Taiwan 2021 How to identify Taiwan sourced income

Date
2021-02-24 16:49

How to identify Taiwan sourced income

 

Taxpayers often ask how to identify Taiwan sourced income. Here are explanations to thekey points to determination.

For individuals, it shall refer to the salaries and wages, income from professional practice, or other income from services rendered by an individual in the territory of Taiwan.

For profit-seeking enterprises, the term shall refer to any income from services rendered under any of the following conditions:

1. The conduct of rendering services is fully performed and completed in Taiwan.

2. The conduct of rendering services is required to be performed within and outside Taiwan before it can be completed.

3. The conduct of rendering services is performed outside Taiwan, but the involvement and assistance of an individual or profit-seeking enterprise residing in Taiwan is required before it can be completed.

If the service income is sourced from Taiwan, Taiwan income tax will be levied on a withholding basis by a tax agent for a non-resident service provider or filing an income tax return by the resident service provider.