Enforcement Rules of the Income Tax Act Article 10-3

From January 1, 2018, where a shareholder of a company, a member of a cooperative, or an investor of other juristic person receives the dividends or earnings distributed from its investment in a domestic company, a cooperative, or other juristic person, such income shall be levied according to the following regulations:1.An individual residing in the Republic of China who receives dividends or earnings distributed from a company, a cooperative, or other juristic person and such dividends or earnings are earned in the year 1998 or any ensuing year thereafter, shall be subject to assessment of income tax in accordance with the provisions of Paragraph 4 or Paragraph 5 of Article 15 of the Act. Dividends or earnings are earned by a company, a cooperative, or other juristic person in the year 1997 or any previous year, shall be computed in the gross consolidated income and said individual shall be subject to assessment of income tax in accordance with the provisions of Paragraph 2 of Article 15 of the Act.2.The dividends or earnings received by a profit-seeking enterprise organized as a company, a cooperative, or other juristic person having its head office within the territory of the Republic of China shall not be included in its taxable income in accordance with Article 42 of the Act.3.The dividends or earnings received by an organization or institution established for educational, cultural, public welfare, or charitable purposes shall be included in its taxable income to be levied or exempted from income tax in accordance with the provisions of Paragraph 13 of Article 4 of the Act.4.The dividends or earnings received by an individual not residing in the territory of the Republic of China or a profit-seeking enterprise having its head office outside the territory of the Republic of China shall be withheld and the withholding tax paid in accordance with the provisions of Article 88 of the Act by the tax withholder.