Enforcement Rules of the Income Basic Tax Act Article 14

The formulas to be used by an individual taxpayer for calculating his/her basic taxable income and for calculating his/her income basic tax in accordance with the provisions set out respectively in Articles 12 and 13 of the Act are specified as follows:The Amount of Basic Income = Net Amount of Consolidated Income + the total amount of the dividends and earnings which is chosen to calculate the tax payable separately in accordance with Paragraph 5, Article 15 of the Income Tax Act + (The Amounts specifiedin Subparagraphs 1, 2, and 4 of Paragraph 1, Article 12 of the Act) + (The Amount specified in Subparagraph 3, Paragraph 1, Article 12 of the Act – the Loss specified in Paragraph 2, Article 12 of the Act) + (The Amount prescribed in Subparagraph 5, Paragraph1, Article 12 of the Act – the Loss specified in Paragraph 4, Article 12 of this Act).The Amount of Income Basic Tax = (the Amount of Basic Income – NT$6,000,000) × 20%.When calculating the basic taxable income using the formula specified in the preceding paragraph, if the amount of balance resulted from subtracting the amount of loss specified in Paragraph 2, Article 12 of the Act from the amount specified in Subparagraph3, Paragraph 1, Article 12 of the Act and/or the amount of balance resulting from the subtraction of the amount of loss specified in Paragraph 4, Article 12 of the Act from the amount specified in Subparagraph 5, Paragraph 1, Article 12 of the Act are/is ofa negative figure, such negative figure(s) shall not be included in the calculation.For an individual taxpayer, if the amount of the income basic tax is higher than the amount of the ordinary income tax amount, then the amount of difference thereof as calculated under the provisions set out in Paragraph 1, Article 4 of the Act shall be offsetagainst the not-yet-offset withholding tax and tax credit when calculating the income tax payable by him/her, and he/she shall make voluntary payment thereof before filing his/her annual income tax return. However, the withholding tax, with regard to the amountof income which is not allowed to be added to the gross consolidated income, shall not be deducted from the income tax payable.The amount of regular income tax of an individual as referred to Article 11 of the Act shall include the tax payable of the total amount of the dividends and earnings which is calculated separately in accordance with Paragraph 5, Article 15 of the Income TaxAct.