The National Taxation Bureau of the Central Area, Ministry of Finance, indicated that, for aliens having income from the ROC, individual income tax shall be levied on the income derived from such sources in accordance with the Income Tax Act of the ROC. 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 alien taxpayers to file their income tax returns.
1."Non-Residents" of the ROC
(1) For an alien who stays in the ROC not more than 183 days within a taxable year (from Jan. 1 to Dec. 31), the income derived from sources in the ROC shall be withheld according to the withholding rate and paid at the respective sources. The taxpayer need not file an income tax return. But for income which is not subject to the Withholding Code, the taxpayer shall file and pay tax in line with the withholding tax rate by the due date; but if he or she leaves the ROC before the filing due date, he or she must file and pay tax in line with the withholding tax rate before his or her departure.
(2) For aliens staying in the ROC over 90 days and whose income tax shall be declared and computed based on the remuneration paid by employers outside the ROC for services rendered in the ROC, they will have to pay the regulated percentage of tax on their earnings; persons who have not surpassed 90 days to provide labor services and their remuneration is paid by overseas employers are not required to apply.
2."Residents" of the ROC
An alien who stays in the ROC 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 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 services rendered in the ROC) minus applicable exemptions and deductions.
For example, aliens who entered the ROC on June 1, 2017 and left on May 20, 2018 will be regarded as “Residents of the ROC” because their total stay in the ROC was over 183 days in 2017. Their 2017 income tax return should be filed before departure in May 2018 if they had any earnings in the ROC, including any income earned within the ROC derived from outside the ROC for service rendered in the ROC. Those staying in the ROC over 90 days but less than 183 days in 2018 will be regarded as“Non-Residents of the ROC.” The income derived from sources in the ROC shall be subject to income tax at the non-resident withholding rate and paid at the respective sources by employers. The taxpayer need not file an income tax return.
For income that is not subject to the Withholding Code and derived within the ROC or for remunerations derived outside the ROC for service rendered in the ROC. The people should be declared and paid tax in line with the withholding tax rate before departure.