Newsletter
REINSURANCE INCOME OBTAINED BY FOREIGN INSURERS FROM INSURERS IN TAIWAN EXEMPT FROM CORPORATE INCOME TAX
The Ministry of Finance announced on 4 March 1999 that income obtained by foreign insurers from insurers within the territory of the ROC is exempt from profit-seeking enterprise income tax.
The reinsurance business is international in nature. In cases where ROC insurers have obtained reinsurance income from overseas, the countries of origin have not assessed corporate income tax on the income. Therefore, based on international practice and the principle of reciprocity, reinsurance income obtained by foreign insurers in Taiwan will not be deemed ROC-scoured income and so should be exempt from profit-seeking enterprise income tax.