In a recent case, Mr. Chen wondered whether he needs to file individual income tax return in Taiwan. He is a maintenance engineer who was sent to Taiwan for 4 months in 2020 by an American company, and received a salary from said American company during his time in Taiwan.
National Taxation Bureau (NTB) reminded that remuneration for services rendered within the territory of Taiwan, provided that Mr. Chen stayed in Taiwan for a period of more than 90 days during a taxable year, shall be taxable regardless of whether the remuneration was paid by abroad or domestic employer.
NTB further explained that Mr. Chen lived in Taiwan for more than 90 days in 2020, and received remuneration for providing labor services. Therefore, whether the payment was paid by the USA head office or domestic company, it shall be subject to "income from sources in Taiwan" according to the Income Tax Act. As such, Mr. Chen has to prepare a valid passport, an Alien Resident Certificate (if holding an ARC), certificate of residence, tax of salary withholding statement and certificate of earnings paid abroad for services performed in Taiwan in advance and file his income tax return to the tax authority with jurisdiction over the location of the address given on his ARC.