Update on Regulation of Change of Alien Tax Payment

According to Explanatory Decree No. 09704542390 by the MOF issued on Aug. 13, 2008, the alien stays in Taiwan (R.O.C.) less than 183 days must be considered as an “individual not residing in the Republic of China” and the individual income tax must be declared and withheld at source.

However, Paragraph 5 of the Explanatory Decree No. 30456 issued on Jan. 20, 1978 has not been abolished and shall be applicable, manager or branch company, foreign employee holding legal work permit or legal representative of rep office need not pay 20% withholding tax before he/she is identified not having been stayed in Taiwan for over 183 days at departure.