Newsletter
Business entities need not issue withholding and non-withholding tax statements and dividend vouchers under certain circumstances starting from year 2014
According to the latest amendments to Articles 94-1 and 102-1 of the Income Tax Act, which were promulgated on 8 January 2014, a statutory tax withholder need not issue withholding and non-withholding tax statements, dividend vouchers and other relevant documents ("Tax Documents") to an income recipient if the information that would have been stated thereon ("Relevant Information") has been duly reported to the tax authorities, and the following conditions are met:
(i) the income recipient is an individual residing within the territory of the Republic of China (ROC) or a profit-seeking enterprise, an organization, an institution, a practitioner, or a trustee of a trust, which has a fixed place of business within the territory of the ROC;
(ii) the Relevant Information has been entered into the Income Information Inquiry System by the tax authorities during the income tax return filing period; and
(iii) other conditions set forth by the Ministry of Finance (MOF).
The MOF's Income Information Inquiry System contains, among others, Relevant Information on ROC individual tax residents. In this regard, the MOF issued a tax ruling on 10 January 2014 (Ref. No.: Tai-Cai-Shui-Zi-10304506650) which states that, if a statutory tax withholder reports Relevant Information on income recipients or before 5 February 2014, the statutory tax withholder need not issue Tax Documents to those income recipients who are ROC individual tax residents unless they request for them. As to other income recipients, statutory tax withholders are still required to issue Tax Documents to them.