2014-05-31 21:11:43

Article 25 of the Income Tax Act, businesses whose headquarters are outside of Taiwan must apply for the tax benefit described in Article 25 of Income Tax Act with the Ministry of Finance and 15% of its business revenue within Taiwan would be the taxable income. For enterprises that received approval for this tax benefit, the withholding tax rate on its income from technical services will be reduced from 20% to 3%. 1. 15% of the technical service revenue is the taxable income, which is then multiplied by the withholding tax rate, which is reduced from 20% to 3%. OR 2. 15% of the technical service revenue is the taxable income, which is then multiplied by the corporate tax rate, which is reduced from 17% to 2.55%. (Income Tax Act: http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0340003)