- Taiwan’s Ministry of Finance (MOF) recently promulgated amendments to rules in Taiwan’s Income Tax Act for calculating the taxable income of foreign profit-seeking enterprises (Article 25 relief).
- The amendments include adding qualified filing agents, extending the application deadline from the current 5 years to 10 years and stipulating the maximum approval period of the Article 25 relief.
If your company has received Taiwanese-sourced income, please note that the recent amendment to Article 25 of the Taiwan Income Tax Act (referred to as “Art. 25 tax relief”) has extended the application deadline for tax relief from 5 to 10 years.
We encourage you to review your accounts to check if any payments previously withheld at a 20% rate by Taiwanese clients were considered expired and therefore ineligible for tax relief. This amendment offers a new opportunity to benefit from a reduced preferential tax rate—from 20% to 3%.
