From year 2006, implementation of ‘Basic Income Tax Act’. The purpose is to allow some people with higher income but pay less or even do not need to pay tax, to be paid at least the basic income tax to promote tax fairness. According to Article 12 of the Ordinance, individuals should be included in taxable for personal income from overseas since 1 January 2010.
The main reason personal oversea income should be included is before this act, consolidated income tax only taxable for oversea income source from Republic of China. This is not fair caused people moving their fund for investment in others country but the income is no taxes. This also will lead capital outflows. Personal oversea income included in Basic Income Tax Act may reduce the taxable differences for income source from Republic of China and others country. This act in line with international practice.
Tax payable for Oversea Income include:
- Nationality for Republic of China and who lived in Taiwan(regardless how long stay) ; or
- Not nationality for Republic of China,but stay at Taiwan for accumulate 183days in the year.
People still do not have to declare oversea income if he fulfill above condition but income less than a certain amount. People who income reach certain amount but paying less tax or even free from taxes will required to pay the Basic Income Tax, so the actual affected is limited.
- Not required to declare if a family oversea income below NTD one million.
- Not required to declare if a family oversea income above NTD one million, but below six million after added income source from Republic of China
- Should be declare if a family oversea income above NTD one million, and income source from Republic of China exceed six million.
- Not nationality for Republic of China, but stay in Taiwan for accumulate of 183 days in the year.
So that, only people with higher income should declare for oversea income, there is not affected for public.