Income Tax Act Article 71

A taxpayer shall, within the period from May 1 to May 31 of each year, fill out and file to the competent tax authority an annual income tax return declaring therein the items and amounts that make up his/her gross consolidated income (for an individual) or the gross profit-seeking income (for a profit-seeking enterprise) for the preceding year together with the tax deductions/exemptions, and/or offsets associated therewith, if any. The taxpayer shall further calculate the amount of income tax actually payable by him/her/it by deducting the provisional income tax payment, the unused withholding tax and the amount of tax credit as calculated per Paragraph 4 of Article 15 from the amount of the income tax payable for the whole year, and shall pay the remaining balance before filing the annual income tax return. However, the withholding tax from the income subject to separate taxation in accordance with this Act shall not be deductible.A profit-seeking enterprise organized as a sole proprietorship or a partnership shall declare an annual income tax return as per the preceding paragraph and be exempt from computing and making a tax payment before filing its income tax return; the amount of income of a profit-seeking enterprise shall be included in “Income from profit-seeking activities” as defined in Category 1, Paragraph 1 of Article 14, and the individual income tax shall be levied in accordance with this Act. However, a sole proprietorship or a partnership recognized as a small-scale profit-seeking enterprise shall not file an annual income tax return; the amount of the profit-seeking enterprise income assessed by the tax authority shall be included in “Income from profit-seeking activities” and the individual income tax shall be levied in accordance with this Act.An individual residing in the territory of the Republic of China whose annual gross consolidated income does not exceed the sum of the amount of exemption plus the standard deduction for the current year shall be exempt from filing an annual income tax return. However, if an application has been filed for refund of the tax withheld and the amount of tax credit as calculated per Paragraph 4 of Article 15 from the amount of the income tax payable for the whole year, or subject to separated taxation according to Paragraph 5 of Article 15, the said taxpayer shall still be required to file the annual income tax return.