※ Ｍay 2024 CFC Declaration DM:

Individuals (or enterprises) subject to the Controlled Foreign Company (CFC) rules shall include the business income (or investment income) calculated from CFC's current-year earnings in the basic income for individuals (or the profit-seeking enterprise income) in the same year when filing their 2023 income tax return in May 2024.

Steps of CFC rules inspection
• STEP 1
Determination of CFC
For those who directly or indirectly hold 50% or more of shares or capital of a foreign enterprise in a low-tax jurisdiction or have control over such a foreign enterprise, the foreign enterprise is CFC.

• STEP 2.
Assessment of Exemption Threshold
The CFC carries out substantial operating activities  or
The current-year earnings of the CFC do not exceed NTD 7 million

• STEP 3.
Calculation and Declaration of CFC Taxable Income

individuals business income (enterprises investment income)
                 =
CFC current-year earnings
                 *
direct shareholding ratio
                 *
holding period

Transitional Measures
If an enterprise which is invested by CFC in a non-low-tax jurisdiction resolves to distribute its surplus earnings of the fiscal year 2022 and prior years before or on March 31, 2024, the resolved amount is excluded from the calculation of CFC's current-year earnings for the year of resolution for surplus earnings distribution.

Friendly Reminder
Individuals or enterprises holding shares of CFCs shall disclose the CFC information in the prescribed format and provide CFC financial statements and related documents before May 31,2024
If individuals or enterprises are unable to provide CFC financial statements before the aforesaid deadline, they could apply for an extension before the expiration of the filling period or along with their 2023 income tax return filing. The maximum extension period is until November 30, 2024.