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Requirements

Author: James Chang 90 views

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.

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