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Taiwan: Calculating Taiwan-sourced income of foreign businesses for certain activities

Taiwan: Calculating Taiwan-sourced income

The Ministry of Finance issued a tax ruling with respect to the new method for calculating Taiwan-sourced income derived by foreign business entities engaging in importing, storage, manufacturing, and delivery of goods to domestic and foreign customers.


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According to the ruling, the profit standard rate and contribution rate (the “simplified calculation method”) can be adopted by foreign entities conducting these activities and is not limited to free trade zones or to bonded areas. In addition, the contribution rate is reduced in order to achieve a “more reasonable” tax burden. 


Read a May 2018 report [PDF 276 KB] prepared by the KPMG member firm in Taiwan

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