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Q & A

1、The Alien Individual Income Tax and the Period of Residence.
For any alien having income from sources in the Republic of China,individual income tax shall be levied on the income derived from such sources in accordance with the Income Tax Act of the ROC. The alien taxpayers are divided into "Non-Residents of the ROC" and "Residents of the ROC" based on their length of stay. The following are the different ways for aliens to file income tax returns.
  1-1 "Non-Residents" of the Republic of China
            a.  For an individual who stays in the Republic of China not more than 90 days within a taxable year (Jan. 1 to Dec. 31), the income derived from sources in the Republic of China shall be withheld according to the withholding rate (see Article 15) and paid at the respective sources. The taxpayer need not file an income tax return.
            b.  For an individual who stays in the Republic of China over 90 days but less than 183 days within the same taxable year, individual income tax shall be declared and computed according to the withholding rate (see Article 15) on his or her remunerations derived within or outside the Republic of China for his or her services rendered in the ROC.
     1-2 "Residents" of the Republic of China
An individual who stays in the Republic of China for 183 days or more within a taxable year is regarded as a resident and the individual income tax shall be declared and assessed by a progressive rate (See Article 14) on the amount of his or her net consolidated income (taxable income) which shall be the annual gross consolidated income (including the various incomes derived within the ROC and the remunerations derived outside the ROC for service rendered in the ROC) minus the exemptions and deductions.



2、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?

If the alien left the Republic of China after he 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.


3、Computation of Residence.
The computation of the period of residence of an alien in the ROC is based on the dates stamped on his or her passport (excluding the date of arrival and including the date of departure). If an alien enters and exits this country a number of times within a taxable year, the period of residence shall be the total number of accumulated days.