Taiwan’s Ministry of Finance has released a notice regarding the application of Controlled Foreign Company (CFC) rules to foreign residents meeting the country’s residency criteria.
The notice states that foreign nationals, who lived in Taiwan for 183 days or more in taxable year 2023, will be considered residents for tax purposes and must comply with the CFC Rules when filing their income tax returns between 1 – 31 May, 2024.
The CFC Rules – effective from 1 January, 2023 – require individuals with significant holdings in foreign enterprises in low-tax jurisdictions to declare their business income from these entities.
The Bureau emphasised that CFC income is part of the aggregated overseas income, which must be declared if it exceeds TWD 1,000,000. Taxpayers with total basic income over TWD 6,700,000 must pay the basic income tax.
