Taxation - Taiwan
Clearstream does not currently provide tax relief/reclaim services for the Taiwanese market. Customers are advised to engage a local tax agent for all tax related matters according to market practice.
Taxation is applicable according to the residence status of the investor and of the issuer.
For foreign investors
- Foreign issuers: 0%
- Local Taiwanese issuers:
- For foreign institutional investors with no fixed operation offices (permanent establishments) in Taiwan, 15% of interest income is deducted at source.
- For foreign institutional investors with fixed operation offices (permanent establishments) in Taiwan, such interest income shall be included in the annual tax filing with its offices in Taiwan.
For local Taiwanese investors
- Foreign issuers
As per Article 3 of the Income Tax Act, such income is included in the business income tax filing.
2nd paragraph of Article 3 of Income Tax Act :
"For any profit-seeking enterprise having its head office within the territory of the Republic of China, profit-seeking enterprise income tax shall be levied on its total profit-seeking enterprise income derived within or without the territory of the Republic of China; provided, that in case income tax has been paid on the income derived outside of the territory of the Republic of China in accordance with the tax act of the source country of that income, such tax paid may, upon presentation by the taxpayer of evidence of tax payment issued by the tax office of said source country for the same business year and attested by a Chinese embassy or consulate or other organizations recognized by the Government of the Republic of China in the said local, be deducted from the amount of tax payable by the taxpayer at the time of filing final returns on the total profit-seeking enterprise income, to the extent that such deduction shall not exceed the amount of tax which, computed at the applicable domestic tax rate, is increased in consequence of inclusion of its income derived from abroad."
- Local Taiwanese issuers: 10% of interest income is deducted at source and included in the business tax filing.