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On 25 September 2002 the Executive Yuan an-nounced amendments to the Rules Governing Standards Withholding Tax Rates of Various Type of Income. The main changes are as fol-lows:
Under new provisions, tax is to be withheld at the rate of 6% on the full amount of income from beneficiary certificates or asset-backed securities issued in accordance with the Fi-nancial Assets Securitization Statute, regard-less of whether the recipient is resident in the ROC, or a business entity with a fixed place of business in the ROC.
If the beneficiary of a trust deed is not the settlor, and is a non-resident individual or a business entity with no fixed place of business or business agent in the ROC, then at the time when the trust is created or amended, or fur-ther assets are added to it, the settlor shall withhold tax at the rate of 20% of the value of the entitlement or the increase in the value of the entitlement.
If the beneficiary of a trust deed is unspecified or does not yet exist, then the trustee shall withhold and declare tax at the rate of 20% of the value or increase in value of the benefici-ary's entitlement to benefits under the trust, in respect of the tax year in which the trust is created or amended, or further assets are added to it.
