Taiwan’s Ministry of Finance issued a notice on 18 March 2025, confirming the implementation of revised withholding tax regulations, effective from 1 January 2025.

Under the amended rules, which take effect on the same date, the tax withholder for income payments will be the enterprise or organisation itself.

However, for payment of income no later than 31 December, 2024, the original withholding rules shall apply, which indicates the tax withholder is the manager of the withholding agency or the person-in-charge of the enterprise.

The National Taxation Bureau of the Southern Area, Ministry of Finance, stated that according to the amended withholding rules, the tax withholder is amended as the enterprise, organisation, institution or school itself, in contrast with the person-in-charge of the enterprise or the manager of the withholding agency under the original withholding rules.

Such an amendment is more in line with the principle of accountability in administrative law. In addition, as for the payment of income subject to withholding of a non-resident, the period of all the taxes withheld, submission, and issuance of the withholding tax statements shall be extended for five days in the case that three national holidays occur in succession during the period, just like the current rule of residents, so as to ease the workload for the tax withholder during consecutive holidays.

For example, Company A paid a 2024 year-end bonus to a non-resident individual on 23 January 2025 and withheld a tax payable. In accordance with the amended withholding rules, the tax withholder shall be Company A.

The period for the payment of all the taxes withheld, submission, and issuance of the withholding tax statements was 10 days from the date of withholding, by 1 February 2025.

However, since 28 January to  31 January 2025 was during the Lunar  New Year holiday, the above-mentioned period shall be extended for five days (by  6 February 2025).