Taxpayers Whose Length of Stay Are More Than 90 Days for Year 2013 Please File Past Due Returns Pursuant to The Income Tax Act

National Taxation Bureau of Taipei (NTBT),Ministry of Finance expressed that,based on Subparagraph 3,Paragraph 1,Article 8 of Income Tax Act of the ROC,a foreigner staying in the Republic of China for more than 90 days during a taxable year,the remuneration paid by overseas employer for the services rendered within the territory of ROC shall be deemed to be ROC-source income and is required to file such income consolidated with income received within the ROC and pay the relevant taxes thereon.

NTBT explained that,normally,most of foreigners who reside in the ROC for more than 90 days within a taxable year engage in commercial activities or provide services on behalf of their employer(s),for example,like selling or purchasing products,investigating local market, inspecting goods or rendering technical support services.ROC government provides taxpayers with suitable working environment,various kinds of public facilities as well as government services during the period of staying within the territory.Given that,foreigners are obligated to pay income tax for the ROC-source income incurs.Moreover,to comply with international taxation practice,the source of service income is ascribed to the country wherein the service is rendered and also the relevant length of stay.

NTBT pointed that out,to enhance the taxation equity,NTBT is now assessing the cases for taxpayers who failed to file their tax returns according to the relevant laws,and 3,253 foreign taxpayers from the US, Japan, Hong Kong,Malaysia,Singapore and so forth are listed to ensure the compliance with the relevant regulations.NTBT called on that,the aforesaid foreign taxpayers please file past due declarations and make

supplementary payments in accordance with the Income Tax Act,otherwise the competent tax office will conduct the collecting procedures as well as enforcement measures and might notify the National Immigration Agency to deny departure clearance.NTBT reminded that,taxpayers please file the tax returns in time,otherwise might be subject to penalties or suffer from the loss due to possible customs control.