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The Rules Governing Withholding Tax Rates of Various Categories of Income was amended on 29 January 1999. Key points of the amendment are outlined below:
Retirement income obtained by an ROC resident should be subject to withholding at the rate of 6% on the excess of the amount paid over a fixed amount of exemption.
Income received by a non-ROC resident in the form of dividends distributed by a company, profits distributable by a cooperative, profits distributable annually by a partnership to its partners, or income obtained from annually by a sole proprietorship to its sole proprietor is now subject to withholding at a rate of 30%, down from the previously prescribed 35%. However, for income earned or profits distributed from enterprises invested pursuant to the Statute for Investment by Overseas Chinese or the Statute for Investment by Foreign Nationals, the income tax withholding rate remains at 20%.
Retirement income obtained by a non-ROC resident should be subject to withholding at the rate of 20% on the excess of the amount paid over a fixed amount of exemption.
The scope of assessment on income received from individuals, legal persons, government agencies, or financial institutions within the ROC from an offshore banking unit is expanded from the original interest on loans to include all income from credit extension. The income tax shall be calculated at the originally prescribed withholding rate of 15%.
