1. Question: Who is liable for individual income tax?

Answer: Any individual who has income derived from sources in the Republic of China shall be liable for individual income tax in accordance with the Income Tax Act of the Republic of China. In the case that a taxpayer is under the obligation to file an Individual Income Basic Tax (IIBT) Return, he or she is required to file the IIBT Return jointly with the Individual Income Tax Return (General Form).

2.Question: When is tax payment due ?

Answer: The tax payment periods for aliens are different for different lengths of resident status in the ROC. 1. For an individual staying in the Republic of China for not more than 90 days, the income tax payable shall be withheld directly at the time of payment by the withholder in accordance with the withholding rate. However, in the case that an individual has sole or additional income deriving from sources to which such procedure for withholding is not ordinarily applied, such as for income occurring from property transaction, occasional trade, interest from mortgages, etc., he or she should declare such income and pay such tax as may be found owing before his or her departure. 2. For an individual staying in the Republic of China over 90 days but less than 183 days the income tax payable shall be withheld directly at the time of payment by the withholder in accordance with the withholding rate. (The employer is responsible for the preparation of a "Withholding & Non-Withholding Tax Statement" which will be required for use by the taxpayer at the time he or she is filing a tax return.) Furthermore, income derived from abroad for services rendered within the ROC, or any income, to which such procedure for withholding as described above is not ordinarily applied, such as the income occurring from property transaction, occasional trade, interest from mort-gages, etc., should be declared and such tax as may be found owing paid before departure. 3. Any individual staying in the Republic of China for 183 days or more shall file the annual income tax return of the previous year during the period from 1st May to 31st May of the current year. However, any individual who intends to leave the territory of the ROC in the interim of the year, and will not return within the same year, shall file his or her income tax return one week before his or her departure.

3.Question: Where to file the tax return?

Answer: Please file your individual income tax return with the tax authority located in the district where you stay. 1. Individuals residing in Taipei City should file their returns at the Foreign Taxpayers’ Section,Taipei National Tax Administration , M.O.F.(No. 2, Sec.1, Jhonghua Road, Taipei 108, R.O.C.) Tel：(02)23113711 Ext.1116,1118. 2. Individuals residing in Kaohsiung City should file their returns at the Foreign Taxpayers’ Section, Kaohsiung National Tax Administration , M.O.F. (2nd Floor, No. 148,Guangjhou 1st St., Lingya District ,Kaohsiung 802, R.O.C.) Tel：(07)7256600 Ext.7020,7021,7022. 3. Other individuals residing in Taiwan should file their returns at the branch offices and service centers of the National Tax Administration.

4.Question: What do “non-resident” and “resident” of the Republic of China mean?

Answer: 1. An alien who stays within the territory of the Republic of China for less than 183 days in a taxable year is regarded as a non-resident. 2. An alien who stays within the territory of the Republic of China for 183 days or more in a taxable year is regarded as a resident. 3. The period of residence of an alien in the R.O.C. is calculated according to the entry and exit dates stamped in his or her passport. (The periods for pilots, flight attendants, and sailors are, in addition, also calculated by their duty records or service records.)

5.Question: If the income tax was initially paid and filed while the alien had stayed less than 183 days, and then the said alien continued to stay for more than 183 days in the same taxable year, how should his income tax be computed for that year?

Answer: If the alien left the Republic of China after he or she had been taxed at the flat rate for non-resident status, then returned in the same taxable year and continued to stay in the ROC up to 183 days or more, the tax payable for that year should be reassessed at the progressive rate for resident status. Tax previously paid could be credited.

6.Question: If the house is rented, how to declare rental income?

Answer: The calculation of rental income, is expressed as annual rental income, minus the necessary loss and deduction expenses to get total income. Necessary losses and expenses (such as depreciation, repairs, land tax, house tax, insurance premiums taken out on the house, housing loans from financial institutions and leasing interest, etc.) can be itemized for proof. If it is not reported one by one, 43% of rental income can be regarded as necessary expense, and 57% of annual rental income will be considered as the rental income of the year.