A withholding tax, or retention tax, is an income tax to be paid to the government by the payer rather than by the recipient of the income. The tax is thus withheld, or deducted, from the income paid to the recipient. And international withholding tax is the tax that Taiwanese government requires Taiwanese payers to withhold at specific rates from interest, dividends, royalties, technical consulting service fees, and other “Taiwan-sourced income” paid to non-residents; the rates vary by type of income.
|Interest of government bond||15%|
|Technical consulting service fee||20%|
|Other Taiwan-sourced income||20%|
The Taiwanese government requires withheld taxes to be paid and reported to tax authorities within 10 days after the income is released.