Taiwan has amended the laws on income tax, VAT and business tax with an effective date of 1 January 2015 in the case of the income tax changes. The measures include an increase of the business tax rate on core business revenue in banking and insurance from 2 percent to 5 percent. In the case of foreign financial institutions without any fixed place of business in Taiwan who are supplying specified services there will be a requirement for the purchasers of the services to compute the business tax and pay it over to the government.
Direct tax changes include the reduction of the imputation tax credit ratio on dividends by half. The highest tax rate for individuals is to rise to 45 percent.
