17 April, 2018
The amendment to the Income Tax Act was passed by the Legislative Yuan on January 18, 2018 and promulgated by the President on February 7, 2018.
The major aspects of the amendment include:
(1) the tax bracket of 45% has been eliminated and the highest tax bracket is now at the rate of 40%;
(2) the amount of the standard deduction is increased;
(3) the Integrated Income Tax System regarding the taxation of dividends has been abolished, and the taxpayers may now choose to either include the dividend income in the total income or to separate them when filing income tax returns; and
(4) the Profit‐seeking Enterprise Income Tax rate is increased to 20%.
For those profit‐seeking enterprises with taxable income lower than NT$500,000, the Profit‐seeking Enterprise Income Tax will increase 1% per year for 3 consecutive years.
For further information, please contact:
Elvin Peng,Tsar & Tsai Law Firm
law@tsartsai.com.tw
