The Ministry of Finance has proposed changes to Taiwan’s tax system. The tax reform would adjust the tax rate structure for both individual and corporate income taxpayers; reduce the tax burden for domestic investors on dividend income; reduce the individual income tax rate; raise the corporate income tax rate; reduce the surtax rate; implement a new passthrough regime for the taxation of sole proprietorships and partnerships, among other items. The proposals are expected to be submitted to the legislature in October 2017.
Under the draft bill, the imputation tax system would be repealed, and the rate of withholding tax on dividends paid to non-resident foreign investors would be increased from 20% to 21%.
The legislation would propose the following changes to the taxation of corporations:
The legislation would propose the following changes on the taxation of individuals:
Read a September 2017 report [PDF 360 KB] prepared by the KPMG member firm in Taiwan
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.