The Legislative Yuan has approved amendment to the tax reform bill that were announced on 1st September 2017. The measures applies retroactively for taxable years beginning as from 1 January 2018. Key features of the tax reform include:
• Corporate income tax rate increased from 17% to 20%. Effects from beginning on or after 1st January 2018;
• Undistributed earnings tax (surtax) rate decrease from 10% to 5%. Effects from beginning on or after 1st January 2018;
• Reduction of the highest tax bracket from 45% to 40% and increases in deduction thresholds for individuals.