Regulations Governing Application of Calculating Income from Controlled Foreign Company for Individual Article 5
A controlled foreign company that carries out substantial operating activities in its country or jurisdiction, or its current-year earnings do not exceed a given standard, may be exempt from compliance with Paragraph 1 of Article 8.The term "substantial operating activities" referred to in the preceding paragraph shall mean a controlled foreign company that meets the following criteria:1. It has a fixed place of business in its registered place and recruits employees to carry out actual operating business at the local area.2. The sum of its investment income, dividends, interest, royalties, rental income, and gains on the sale of assets for current year constitutes less than 10% of the sum of its net operating income and non-operating income; however, the following items are not included in the calculation of the numerator or denominator:(1) Income and gains from the overseas branches of a controlled foreign company are not included in either the calculation of the numerator or the denominator.(2) A controlled foreign company's royalty income and rental income earned from the use of intangible assets developed in-house or tangible assets developed, constructed, or manufactured by itself in its registered place, as well as gains on the sale of such assets, are not included in the calculation of the numerator.The term "current-year earnings do not exceed a given standard" in the first paragraph shall refer to where the current-year earnings of each controlled foreign company are no more than NTD 7 million individually. However, for controlled foreign companies that their shares or capital are directly held by the individual and their spouse and dependents who are included in a joint annual income tax return for the current year and do not meet the criteria of substantial operating activities mentioned in the previous paragraph, if the sum of their current-year earnings or losses is a positive number exceeding NTD 7 million, Paragraph 1 of Article 8 shall be applied to such controlled foreign companies.For a controlled foreign company whose operating period within a fiscal year is less than one year, when applying the preceding paragraph, its current-year earnings or losses shall be annualized based on the proportion of the months of operation to the full year. Any part of the operating period less than a full month shall be regarded as a full month for such calculations.
中文原文 個人計算受控外國企業所得適用辦法第5條
受控外國企業於所在國家或地區有實質營運活動或當年度盈餘在一定基準以下者，得免依第八條第一項規定辦理。
前項所稱有實質營運活動，指受控外國企業符合下列各款要件者：
一、在設立登記地有固定營業場所，並僱用員工於當地實際經營業務。
二、當年度投資收益、股利、利息、權利金、租賃收入及出售資產增益之合計數占營業收入淨額及非營業收入總額合計數低於百分之十。
但下列項目不納入分子或分母計算：
（一）受控外國企業之海外分支機構相關收入及所得，不納入分子及分母計算。
（二）受控外國企業將其在設立登記地自行研發無形資產或自行開發、興建、製造有形資產，提供他人使用取得權利金收入、租賃收入及出售該資產增益，不納入分子計算。
第一項所稱當年度盈餘在一定基準以下，指個別受控外國企業當年度盈餘在新臺幣七百萬元以下。
但當年度個人與其合併申報綜合所得稅之配偶及受扶養親屬直接持有股份或資本額且不符合前項有實質營運活動要件之受控外國企業當年度盈餘或虧損合計為正數且逾新臺幣七百萬元者，應就各該當年度盈餘為正數之受控外國企業，依第八條第一項規定辦理。
受控外國企業在一會計年度之營業期間不滿一年者，適用前項規定時，應按營業月份相當全年之比例，換算其全年之盈餘或虧損認定之。
營業期間不滿一個月者，以一個月計算。
前項所稱有實質營運活動，指受控外國企業符合下列各款要件者：
一、在設立登記地有固定營業場所，並僱用員工於當地實際經營業務。
二、當年度投資收益、股利、利息、權利金、租賃收入及出售資產增益之合計數占營業收入淨額及非營業收入總額合計數低於百分之十。
但下列項目不納入分子或分母計算：
（一）受控外國企業之海外分支機構相關收入及所得，不納入分子及分母計算。
（二）受控外國企業將其在設立登記地自行研發無形資產或自行開發、興建、製造有形資產，提供他人使用取得權利金收入、租賃收入及出售該資產增益，不納入分子計算。
第一項所稱當年度盈餘在一定基準以下，指個別受控外國企業當年度盈餘在新臺幣七百萬元以下。
但當年度個人與其合併申報綜合所得稅之配偶及受扶養親屬直接持有股份或資本額且不符合前項有實質營運活動要件之受控外國企業當年度盈餘或虧損合計為正數且逾新臺幣七百萬元者，應就各該當年度盈餘為正數之受控外國企業，依第八條第一項規定辦理。
受控外國企業在一會計年度之營業期間不滿一年者，適用前項規定時，應按營業月份相當全年之比例，換算其全年之盈餘或虧損認定之。
營業期間不滿一個月者，以一個月計算。