1. The individuals who have the obligation of filing an individual income basic tax return

(1) An individual shall file an individual income basic tax return in accordance with the Income Basic Tax Act unless his/her circumstances apply to any one or more of the conditions listed below:

1. Non-resident of the R.O.C. (staying less than 183 days within a taxable year in the R.O.C.).
2. An individual who does not apply for any investment tax credits in accordance with the laws and does not have any amount within the scope of the provisions of any of the subparagraphs of Paragraph 1 of Article 12 of the Income Basic Tax Act in his/ her annual income tax return or current income tax return.
3. An individual whose basic income as calculated in accordance with Paragraph 1 of Article 12 of the Income Basic Tax Act is less than NT$6,700,000.

(2) An individual whose circumstances do not apply to any one or more of the conditions mentioned above shall file an individual income basic tax return.

(3) The Individual Controlled Foreign Company (CFC) Rules are enforced from January 1st, 2023. If any member of the reporting household directly or indirectly holds the shares or capital of a foreign affiliated enterprise in a low-tax country or jurisdiction, please refer to “Statement of The Shareholding of An Individual and of His/her Related Parties” to determine the applicability of Individual CFC Rules. If the individual and his/her related parties directly or indirectly hold 50% or more of the shares or capital of such a foreign affiliated enterprise, or have control over it, the individual shall file “Statement of The Shareholding of An Individual and of His/her Related Parties” (including the Attachment: The Organization Chart) and submit it with “Individual Income Tax Return of the Republic of China.” Where the individual, himself/herself, with his/her spouse or relatives within the second degree of kinship directly holding 10% or more of the shares or capital of such a CFC on December 31st, 2023, or directly holding below 10% of the shares or capital however the CFC has current-year losses that would be deducted in the following years, please fill out “Business Income Statement of a Controlled Foreign Company (CFC) for Individual” and submit it with related proof documents.

2. The individuals who should file jointly

In the case that the taxpayer, his/her spouse, and/or dependents, who shall file a joint consolidated income tax return in accordance with the Income Tax Act, have an amount of income, which includes any one or more of the conditions applying under the Income Basic Tax Act, he/she shall include any such amount in the return for the calculation of income basic tax.

3. The kinds of items included in the calculation of the amount of basic income

The following items are included in the calculation of the amount of basic income:

(1) Net taxable income:

The net taxable income is calculated in accordance with the Income Tax Act (please refer to the individual income tax return).

(2) Aggregated overseas income:

Income, which is derived from sources outside the R.O.C. and is excluded from gross consolidated income, as well as income which is exempted in accordance with Paragraph 1, Article 28 of the Act Governing Relations with Hong Kong and Macau. However, if the aggregate of the two aforementioned sources of income in a filing unit is less than NT$1,000,000, it may be excluded from the basic income; otherwise, it shall be filed in the full amount of the aggregate income mentioned above.

(3) Life and annuity insurance payments:

Insurance payments received by the beneficiary, on condition that the beneficiary and the proposer are not the same person and that the life insurance policy and annuities are contracted after this Act came into force. However, in the case of payment made upon the death of the insured person, the part of which aggregate of payments made in a filing unit is equal to or less than NT$33,300,000 may be excluded from the basic income in a calendar year.

(4) Income derived from transactions of securities:

1. Share certificates, certificates of entitlement to new shares, stock share payment certificates and documents of title to any of the securities issued or placed privately by a company that is not listed in a stock exchange or traded in the over-the-counter market, except for those companies that have been approved by the central authority in charge of relevant enterprises as high-risk innovative startups and incorporated for less than 5 years.
2. Beneficiary certificates of privately-placed securities investment trust funds.

(5) Non-cash donations or contributions:

The amount of non-cash donations or contributions deducted from the gross consolidated income of the individual income tax return.

(6) Total amount of dividends and earnings:

A taxpayer chooses to compute the tax on the total amount of dividends and earnings separately from his/her gross income with the single tax rate.

(7) The amount of income or deduction entitled to reduction, exemption, or deduction announced by the Ministry of Finance:

For an individual who invested in R.O.C.’s innovative startups that have been incorporated for less than two years and acquired their shares in accordance with Article 23-2 of the Statute for Industrial Innovation on or after January 1, 2022, and he or she has held the shares for two years by December 31, 2023, the amount that has been excluded from his or her consolidated income of 2023 shall be included in his or
her basic income of 2023.

4. The way in which the amount of basic tax is computed

For filing an income basic tax return, a taxpayer shall subtract NT$6,700,000 from the amount of basic income and then multiply the remainder by 20% to generate the amount of basic tax.

5. The way in which the amount of regular income tax is computed

The amount of regular income tax = tax payable of the individual income tax return - investment tax credit for the tax payable. If a taxpayer chooses to compute the tax payable on the total amount of dividends and earnings separately from his/her gross income with the single tax rate, such tax payable shall be aggregated into regular income tax.

6. The principles underlying the income basic tax

In the case that the amount of regular income tax for an individual is greater than or equal to the amount of basic tax, the income tax of the current year for the said individual shall be calculated in accordance with the Income Tax Act and other relevant laws; whereas in the case that the amount of regular income tax is less than the amount of basic tax, the amount of income tax payable shall also include the balance between the amount of basic tax and regular income tax, in addition to the amount as calculated in accordance with the Income Tax Act and other relevant laws.

7. The principle underlying the tax credit for overseas tax payment

(1) In the case where income tax has been paid on overseas income in accordance with the laws of the source country of that income, such tax paid may be credited against the basic tax, to the extent that such tax credit shall not exceed the amount of basic tax which is increased in consequence of the inclusion of such income. When a taxpayer applies for tax credit as described in the preceding, he/she shall present the evidence of tax payment issued by the tax office, the overseas tax payment receipt, and relevant documents of the said source country for the same assessment year.

(2) Where an individual receives dividends or surplus earnings from CFCs, the income tax on such dividends or surplus earnings paid in accordance with the tax laws of the source jurisdictions can be credited against the amount of basic tax for the year in which these dividends or surplus earnings are calculated as CFC business income and included in the individual’s basic income. An individual shall apply for the aforesaid tax credit within five years since the date after the deadline of the filing period of the year in which such CFC business income is included in the individual's basic income, and any overpaid tax is refundable, to the extent that the tax credit shall not exceed the increase in the basic tax amount due to the inclusion of such CFC business income.

8. The filing procedure

Please attach the individual income basic tax return to the individual income tax return.

※ Filing Form

• 2023 Individual Income Basic Tax Return [PDF]
• 2023 Business Income Statement of a Controlled Foreign Company (CFC) for Individual
  (1) 2023 Statement of the Shareholding of an Individual and of His/Her Related Parties [PDF]
  (2) 2023 The Organization Chart [PDF]
  (3) 2023 Business Income Statement of a Controlled Foreign Company (CFC) for Individual (Form A) (Form B) [PDF] and Filing Instructions [PDF]