On 2 March 2022, Taiwan’s Ministry of Finance (MOF) issued a press release clarifying withholding tax on dividends paid to non-residents companies. MOF clarifies the following issues through the press release:

  • Dividends paid to non-resident companies are subject to a withholding tax of 21%. The tax levied on the surplus shall be offset against the tax withheld;
  • The withholding tax shall be paid to the treasury within 10 days from the date of withholding, a withholding voucher shall be issued, and a declaration shall be made to the tax collection authority;
  • The tax included in the dividends or earnings received by foreign shareholders is the part of the actual tax paid by the profit-seeking enterprise income tax levied on the undistributed earnings, and cannot be used to offset half of the withholding tax. Tax regulations; and
  • Withholding tax should pay in time and should maintain fairness to avoid fines.