Someone whose circumstances fall under any of the following conditions shall be a resident of the ROC:
1、A person who has domicile within the territory of the ROC and resides within the territory of the ROC; or
2、A person who has no domicile within the territory of the ROC but resides within the territory of the ROC for a period of more than or equal to 183 days during a taxable year.
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、Total amount of dividends and earnings which the taxpayer chooses to compute separately from his/her gross income with the single tax rate.
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.
4、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.
5、Income derived from transactions of securities:
Beneficiary certificates of privately-placed securities investment trust funds.
6、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.
7、The amount of income or deduction which is entitled to reduction, exemption or deduction from the consolidated income tax as may be provided by laws which may be promulgated after the implementation of this Act and thereafter announced by the Ministry of Finance.
1、He or she is a resident of the ROC, and
2、His or her filing unit has aggregated both overseas income greater than or equal to 1 million NT dollars and basic income greater than 6.7 million NT dollars in one year.
1、Step 1: To figure out the amount of Income Basic Tax.
The Amount of Income Basic Tax ＝(The Amount of Basic Income - 6.7 million NT dollars) × 20%
2、Step 2: To compare with the amount of income basic tax and the amount of regular income tax.
The amount of regular income tax* ≧ The amount of income basic tax
An individual shall pay the income tax in accordance with the Income Tax Act and does not have to pay the income basic tax.
The amount of regular income tax* ＜ The amount of income basic tax
The difference between income basic tax and regular income tax can be credited because of income tax paid on the overseas income. So the amount of income basic tax payable shall be the sum of aforesaid difference minus the income tax paid on the overseas income.
* The amount of regular income tax ＝ Income Tax payable in accordance with the Income Tax Act - Investment tax credits