Act Governing Relations between the People of the Taiwan Area and the Mainland Area Article 25-1

For any individual, juristic person, organization, or other institution of the Mainland Area or any company it invests in any third area permitted to invest in the Taiwan Area in accordance with the provisions of Article 73, the tax payable for the dividends distributed to it by the company in the Taiwan Area or surplus distributed to a partner shall not be subject to the provisions of tax return filing provided for in the Income Tax Act provided that the tax withholder designated by the provisions of the Income Tax Act, upon payment, withholds twenty percent of the amount payable or distributable. However, any individual of the Mainland Area residing and staying in the Taiwan Area for at least 183 days in a taxable year shall file consolidated income tax return in accordance with the provisions of Paragraph 2 of the preceding Article.Where any director, manager, or technical personnel of any juristic person, organization, or other institution which is permitted to make any investment in the Taiwan Area in accordance with the provisions of Article 73, resides and stays in the Taiwan Area for less than 183 days in a taxable year because of its engagement in investment, factory building, market survey or any other temporary work, its salary income paid outside the Taiwan Area by the referred juristic person, organization, or other institution shall not be deemed its income derived from sources in the Taiwan Area.