Requirements
To apply for the reduced 3% withholding rate,
1. Organization
Business entity or NPO. Practitioners of professions, such as law firms, are excluded.
2. Nationality
Applicants from mainland China are excluded, and applicants from tax havens will be assessed carefully.
3. Permanent establishment in Taiwan
Not relevant and regardless whether or not it has a branch office or business agent in Taiwan.
4. Business in Taiwan
Only international transport, construction contracting, providing technical services, or leasing machinery / equipment are included.
5. Royalties
If the payments for technical consulting services include royalties, the payments for royalties should be separated and excluded from the total technical consulting fee.
6. Industry
No limitation.
7. Technical Depth
No limitation.
8. Effects
No limitation.
9. Cost Calculation
Having difficulty in calculating the project’s cost and profit according to the work done. In this circumstance, the taxpayer applies for the assessed profit rate at 10% or 15%, if the cost can be measured precisely, the taxpayer should be taxed according to the real profits based on real costs.