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

Any individual, juristic person, organization, or other institution of the Mainland Area having income derived from sources in the Taiwan Area shall pay income tax thereon.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 for its income derived from sources in the Taiwan Area, and the taxing provisions applicable to the people of the Taiwan Area shall apply mutatis mutandis.Any juristic person, organization, or other institution of the Mainland Area with a fixed place of business or a business agent shall pay profit-seeking enterprise income tax on its income derived from sources in the Taiwan Area, and the taxing provisions applicable to the profit-seeking enterprises in the Taiwan Area shall apply mutatis mutandis; where it does not have any fixed place of business but has a business agent, its payable profit-seeking enterprise income tax shall be responsible by its business agent, who shall file with each competent tax authorities and pay tax thereto. Where, however, any juristic person, organization, or other institution of the Mainland Area receives net dividends or net surplus derived from its investment in the Taiwan Area, the amount of which shall not be included in its business income, the tax withholder shall withhold the tax payable in accordance with the prescribed rate upon making payment.For any individual of the Mainland Area residing and staying in the Taiwan Area for less than 183 days in a taxable year and any juristic person, organization, or other institution of the Mainland Area without any fixed place of business or business agent, the tax payable for its income derived from sources in the Taiwan Area shall be withheld by the tax withholder in accordance with the prescribed rate upon making payment and not subject to tax return filing; where the income does not fall within the scope of withholding, the taxpayer shall file and pay tax in accordance with the prescribed tax rate, or entrust any individual of the Taiwan Area or any profit-seeking enterprise with a fixed place of business in the Taiwan Area as its agent for tax return filing and payment provided that it cannot file the tax return itself.The relevant provisions of the Income Tax Act shall apply to the withholding matters referred to in the preceding two paragraphs.Schedules governing the withholding rates applicable to the income derived from the sources in the Taiwan Area for any individual, juristic person, organization, or other institution of the Mainland Area shall be drafted by the Ministry of Finance and submitted to the Executive Yuan for approval.