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Within what scope is profit-seeking enterprise income tax levied?

This question can be answered according to the following three points:

1.For any profit-seeking enterprise operating within the territory of the Republic of China, profit-seeking enterprise income tax shall be levied in accordance with the Income Tax Act.

2.For any profit-seeking enterprise having its head office within the territory of the Republic of China, profit-seeking enterprise income tax shall be levied on its total profit-seeking enterprise income derived within or outside the territory of the Republic of China; provided, that in case income tax has been paid on the income derived outside the territory of the Republic of China in accordance with the tax act of the source country of that income, such tax paid may, upon presentation by the taxpayer of evidence of tax payment issued by the tax office of said source country for the same business year and attested by an embassy or consulate of the Republic of China or other organizations recognized by the Government of the Republic of China in the said locale, be deducted from the amount of tax payable by the taxpayer at the time of filing final returns on the total profit-seeking enterprise income, to the extent that such deduction shall not exceed the amount of tax which, computed at the applicable domestic tax rate, is increased in consequence of inclusion of its income derived fromabroad. In case foreign branches or agents of the profit-seeking enterprise incur losses, such losses shall be included in the calculation of income tax for the entire enterprise.

3.For any profit-seeking enterprise having its head office outside the territory of the Republic of China but having income derived from sources in the Republic of China, profit-seeking enterprise income tax shall be levied on its profit-seeking enterprise income derived within the territory of the Republic of China. (Article 3 of the Income Tax Act)

Last updated:2018-02-01