Income Tax Act Article 88

For a taxpayer having any income of the following categories, the tax withholder involved shall withhold a tax payable at the time of payment of income according to the prescribed withholding rates or withholding regulations, and pay the tax withheld in accordance with Article 92:1.The dividends distributed by a company to an individual not residing in the Republic of China or profit-seeking enterprise having its head office outside the Republic of China; or the earnings distributed by a cooperative, other juristic person, partnership, or a sole proprietorship to its members, investors, partners, or sole proprietor not residing in the Republic of China;2.The income from salaries, interest, rentals, commissions, royalties, prizes or awards won from skills competitions or by chance, retirement pay, severance pay, separation pay, resignation pay, life-time pensions, old-age pensions not covered by insurance benefits, rewards for information or accusation, transactions in structured products, and fees for professional practices paid by any organization, non-departmental public body, institution, school, enterprise, administrator of bankruptcy estates, practitioner of profession, or trustee of a trust deed managing or disposing of the trust property, and the income paid to a foreign profit-seeking enterprise without fixed place of business or business agent within the Republic of China;3.Profit-seeking enterprise income derived from operations by a profit-seeking enterprise stipulated in Article 25 having its income tax withheld by a business agent or the payer in accordance with Article 98-1;4.Profit-seeking enterprise income derived from operations in the Republic of China by a foreign motion picture enterprise without a branch office in the Republic of China stipulated in Article 26.Where a profit-seeking enterprise organized as a sole proprietorship or a partnership files its annual income tax return, final income tax return, or liquidation income tax return according to Paragraph 2 of Article 71 or Paragraph 4 of Article 75, the income tax payable on the earnings distributable by a sole proprietorship or a partnership to its sole proprietor or partners not residing in the Republic of China shall be withheld in accordance with prescribed withholding rates by the time limit prescribed for the annual income tax return, final income tax return or liquidation income tax return, and paid in accordance with Article 92 by the tax withholder; and thereafter, Subparagraph 1 in the preceding paragraph shall not apply when the aforesaid earnings are actually distributed.Where a profit-seeking enterprise organized as a sole proprietorship or a partnership stipulated in the preceding paragraph files an annual income tax return, final income tax return or liquidation income tax return in accordance with this Act, requests corrections of the above tax returns, or fails to file the above tax returns, which is assessed and determined by the tax authority to be more profit-seeking enterprise income that increases the earnings of a sole proprietor or a partner of the profit-seeking enterprise, the tax withholder shall withhold the tax payable on the above increased amount of the earnings that should be distributed to the sole proprietors or partners not residing in the Republic of China according to the prescribed withholding rates within 30 days from the date immediately following the date of the receipt of the notice of tax assessment, and pay the tax withheld in accordance with Article 92.The withholding rates and withholding regulations applicable to each kind of income stipulated in the preceding three paragraphs shall be drafted and established by the MOF and submitted to the Executive Yuan for approval.