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May 2007 Issue

Bulletin

AMENDMENTS TO ENFORCE-MENT RULES OF THE INCOME TAX ACT

The 30 May 2006 amendments to the Income Tax Act (ITA) include features to (i) simplify the tax treatment of undistributed earnings by adopting an after-tax net profit basis as per the Business Entity Accounting Act (BEAA); (ii) impose separate tax at source on dividends and net earnings received by enterprises of which their head-quarters are located outside of Taiwan; and (iii) empower the Ministry of Finance (MOF) to establ ... More

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