Taiwan offers foreign businesses advance rulings on tax liability

Taiwan’s tax authority on January 4 announced that foreign businesses that do not have a Taiwan fixed place of business or business agent may apply for an advance determination of the appropriate net profit ratio and onshore profit contribution ratio for use in computing taxable income from services or business profit.

Upon approval, taxable income will be calculated based on the assessed ratios and withheld at the time of payment, the tax authority said.

The changes are designed to relieve burdens for both the government and taxpayers, the tax authority said.