Taiwan’s Ministry of Finance (MOF) announced tax reform proposals on 1st September 2017 that would rebuild the income tax system.
The proposals include the following:
- Corporate income tax rate increases from 17% to 20%;
- Standard dividend withholding tax rate raise from 20% to 21% for non-resident recipient;
- Undistributed earnings tax (surtax) rate decrease from 10% to 5%;
- Elimination of the imputation system;
- Reduction of the highest tax bracket from 45% to 40% and increases in deduction thresholds for individuals.
If approved, the proposal are expected to apply for taxable years beginning in 2018.
