Income Tax Act Article 98-1

A profit-seeking enterprise having its head office outside the territory of the Republic of China which has been approved by the MOF in accordance with Article 25 may compute its profit-seeking enterprise income tax in accordance with the following provisions:1. For an enterprise having a branch office in the territory of the Republic of China, the branch office shall make the provisional tax payment and file a declaration on such provisional payment in accordance with Article 67 and at the close of the year shall further compute the tax for annual settlement, make payment of the same and file an annual income tax return in accordance with Article 71;2. For an enterprise without a branch office but having a business agent in the territory of the Republic of China, the business agent shall be responsible for withholding the tax. In the event that the business agent does not collect the price of goods pursuant to contractual agreement, it shall be responsible for reporting and paying the tax in accordance with the relevant withholding provisions or the payer shall withhold the tax at the time of payment under the approval of the competent tax authority;3. For an enterprise having neither branch office nor business agent in the territory of the Republic of China, the payer shall withhold the tax at the time of payment.