Income Tax Act Article 3

For any profit-seeking enterprise operating within the territory of the Republic of China, the profit-seeking enterprise income tax shall be levied in accordance with this Act.For any profit-seeking enterprise having its head office within the territory of the Republic of China, the profit-seeking enterprise income tax shall be levied on its total profit-seeking enterprise income derived within and without the territory of the Republic of China; however, in case income tax has been paid on the income derived outside of the territory of the Republic of China in accordance with the tax law of the source country of that income, such tax paid may, upon presentation by the taxpayer of evidence of tax payment issued by the tax office of said source country for the same business year and attested by a Chinese embassy or consulate or other organizations recognized by the Government of the Republic of China in the said local, be deducted from the amount of tax payable by the taxpayer at the time of filing final returns on the total profit-seeking enterprise income, to the extent that such a deduction shall not exceed the amount of tax which, computed at the applicable domestic tax rate, is increased in consequence of inclusion of its income derived from abroad.For any profit-seeking enterprise having its head office without the territory of the Republic of China but having income derived from sources in the Republic of China, profit-seeking enterprise income tax shall be levied on its profit-seeking enterprise income derived within the territory of the Republic of China.