Page 33 - 2024 BRAVO! TAIWAN_en

Basic income = net consolidated income + overseas income Africa
(amounts less than NT$1 million are exempted) The Gambia 10 10 10
+ life insurance and annuities insurance for Senegal 10 15 12.5
beneficiaries and policyholders (the portion South Africa 5,15 10 10
of total annual household death benefits up Eswatini(formerly
to NT$ 37.4 million is exempted) + income Swaziland) 10 10 10
from transactions of beneficiary certificates Source: Taxation Administration, Ministry of Finance
of privately offered funds (excluding domestic Note: The total of the issuing company's corporate income tax liability and the tax withheld
will not exceed 40% on a weighted basis. "Company income tax payable" includes
high-risk startups that meet certain critera) + corporate income tax excluding deductions provided by legal provisions established to
non-cash donations + comprehensive income promote economic development.
tax deduction announced + separately taxed
dividends and earnings. Business Tax
Basic taxable amount = (basic income – NT$7.5 million) x 20% Advantageous Environment
All sales of goods and services, and the importation of
Tax Treaties goods in Taiwan are subject to business tax. Foreign
enterprises that do not have a fixed place of business in
According to the Income Tax Act, non-resident individuals Taiwan, that purchase goods or services for exhibitions
and foreign profit-seeking enterprises having no fixed or temporary business activities (such as business trips,
place of business in Taiwan are subject to withholding tax inspections, market surveys, investment promotions,
on Taiwan-sourced income as follows: 21% on dividends, marketing, or marketing seminars) within a period of one
15% (or 20%) on interest, and 20% on royalties. year, and have paid a certain amount of value-added
business tax on the purchase of goods or services, may
Taiwan has concluded 35 comprehensive income tax apply for a tax refund if there is a reciprocal agreement
agreements. Withholding tax rates for dividends, interest between their home country and Taiwan.
and royalties under these treaties are as follows:

Items Value The VAT is levied by the business during
Country
Dividends (%) Interest (%) Royalties (%) Added the sales process. Except for items for
Non-treaty countries 21 15, 20 20 Business which zero-rate or tax exemptions apply,
Europe Tax (VAT) the current rate is 5%.
Austria 10 10 10 Industries in which the non-value-added
Belgium 10 10 10 business tax is levied include finance,
Czech 10 10 5,10 pawn broking, special food and beverage
Denmark 10 10 10 services, small-scale businesses, and
France 10 10 10 business operators that by Ministry of
Germany 10,15 10,15 10 Non-Value Finance regulations are exempt from
Hungary 10 10 10 Added reporting sales. Businesses in the above
Italy 10 10 10 Business industries pay the non-value-added
Luxembourg 10,15 10,15 10 Tax business tax based on their total sales,
Republic of North without deducting input tax. The highest rate
Macedonia (originally 10 10 10 is 25%, and the lowest is 0.1%. However,
"Macedonia") some types of businesses may apply for
Netherlands 10 10 10 approval to change to value-added type
Poland 10 10 3,10 business tax according to regulations.
Slovak Republic 10 10 5,10
Sweden 10 10 10
Switzerland 10,15 10 10 Specifically Selected Goods and
United Kingdom 10,15 10 10 Services Tax
Asia
India 12.5 10 10 In accordance with the Specifically Selected Goods and
Indonesia 10 10 10 Services Tax Act, a special tax of 10% shall be imposed
Israel 10 7,10 10
Malaysia 12.5 10 10 on the sale, manufacture, and import of specifically
Singapore 40(See Note) Undecided 15 selected goods or services within Taiwan, except where
Thailand 5,10 10,15 10 other laws apply. (Effective January 1, 2016, this tax is
Vietnam 15 10 15 no longer collected on real estate.)
Japan 10 10 10
Saudi Arabia 12.5 10 4,10
Korea 10 10 10 Commodity Tax
Oceania
Australia 10,15 10 12.5 All commodities listed under the Commodity Tax Act,
Kiribati 10 10 10 whether manufactured in Taiwan or imported, are subject
New Zealand 15 10 10 to the commodity tax, except where other laws apply.
Americas Tax rates or amounts are different for each category of
Canada 10,15 10 10 commodity.
Paraguay 5 10 10
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