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Author: James Chang 483 views

According to the Act, a foreign company engaged in international transport involving Taiwan, in construction contracting, providing technical services, or leasing machinery / equipment and the costs / expenses are difficult to calculate, regardless whether or not it has a branch office or business agent in Taiwan, may apply for approval to consider 10% or 15% of its total business revenue as its income derived within Taiwan. And the resulting gross withholding rate will become 2% or 3% (=assessed profit rate at 10% or 15% * regular withholding rate at 20%).

Reduced Rates

TypeDeemed Profit Rate (a)Tax Rate (b)Withholding Rate (c=a*b)
International transport involving Taiwan10%20%2%
Construction contracting15%20%3%
Providing technical services15%20%3%
Leasing machinery / equipment15%20%3%


The case will be submitted to the National Taxation Bureau of the area, and it generally takes 2-4 weeks to address the issues.


Usually only the contract will be assessed, and the evidence of service provision is not required.

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