Q：For profit-seeking enterprise having its head office outside the territory of the Republic of China（R.O.C.）, and which is engaged in international transport, construction contracting, providing technical services, or machinery and equipment leasing, etc., in the territory of the R.O.C., and the cost and expenses of which are difficult to calculate, how should they calculate the amount of the profit-seeking enterprise income and pay their profit-seeking enterprise income tax?

A：
1.Pursuant to Paragraph 1, Article 25 of the Income Tax Act, any profit-seeking enterprise having its head office outside the territory of the R.O.C., and which is engaged in international transport, construction contracting, providing technical services, or machinery and equipment leasing, etc., in the territory of the R.O.C., and the cost and expenses of which are difficult to calculate may apply for approval from the Ministry of Finance, or the Ministry of Finance may make the decision to consider 10% of its total business revenue for an enterprise engaged in international transport business, or 15% of its total business revenue for one engaged in any other businesses as its income derived within the territory of the R.O.C. regardless whether or not it has a branch office or business agent in the territory of the R.O.C.. In such cases, however, the regulation in Article 39 regarding the deduction of losses cannot be applied.

2.Pursuant to Article 98-1 of the Income Tax Act, a profit-seeking enterprise having its head office outside the territory of the R.O.C. which has been approved as in compliance with the provision of Article 25 or by application of the provision of that Article by the Ministry of Finance to compute its profit-seeking enterprise income tax in accordance with the following provisions:

(1)For an enterprise having a branch office in the territory of the R.O.C., the branch office shall make the provisional tax payment and file a declaration on such provisional payment in accordance with the provision of Article 67. At the close of the year, the branch office shall further compute the tax for annual settlement, make payment of the sum and file annual income tax return in accordance with the provision of Article 71.

(2)For an enterprise without a branch office but maintaining a business agent in the territory of the R.O.C., the business agent shall be responsible for withholding the tax. In the event that the business agent does not collect the price of goods pursuant to contractual agreement, the business agent shall be responsible for reporting the tax in accordance with the relevant withholding provisions. Otherwise, the payer shall withhold the tax at the time of payment under the approval of the competent collection authority.

(3)For an enterprise having neither branch office nor business   agent in the territory of the R.O.C., the payer shall withhold the tax at the time of payment.