Income Tax Act Article 89-1

With regard to revenue arising from a trust property as referred to in Article 3-4 hereof, the tax withholder concerned shall, at the time of payment thereof, name the trustee of the said trust deed as the taxpayer for that payment and shall complete the tax withholding process in accordance with the preceding two articles. However, the aforesaid revenue, except for the income subject to separate taxation in accordance with this Act, payable by a tax withholder in respect of a charitable trust set forth in Paragraph 5 of Article 3-4 hereof shall be exempt from the assessment of withholding tax which is otherwise payable under Article 88 hereof.When issuing a withholding tax statement in accordance with Article 92-1 hereof, the trustee of a trust deed shall take the amount of tax withheld from each category of the income paid to a trust beneficiary as the amount of income tax withheld for the said trust beneficiary. However, if there are two or more trust beneficiaries, the trustee shall calculate the withholding tax paid by each trust beneficiary in accordance with the proportion to be determined under Paragraph 2 of Article 3-4 hereof.Where the trust beneficiary is an individual who is not residing in the territory of the Republic of China or a profit-seeking enterprise which does not have a fixed business place in the territory of the Republic of China, the trustee of the said trust deed shall be regarded as the tax withholder and shall, in accordance with Article 88 hereof, withhold the income tax from various income payments payable to said trust beneficiary as calculated under Paragraphs 1 and 2 of Article 3-4 hereof provided. However, the withholding tax already paid up by the trust beneficiary/beneficiaries as set forth in the preceding paragraph may be deductible from the withholding tax payable by such trust beneficiary/beneficiaries under this paragraph.Where the trust beneficiary is a profit-seeking enterprise having its head office outside the territory of the Republic of China but having a fixed business place within the territory of the Republic of China, the provisions in the preceding paragraph shall apply mutatis mutandis to the dividends or earnings among its trust benefits.When making distributions of trust benefits in respect of a charitable trust or a trust fund as set forth in Paragraphs 5 and 6 of Article 3-4 hereof, the trustee thereof shall be considered as the tax withholder who shall complete the withholding process in accordance with the preceding two articles.