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Q：
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What is the income included in the consolidated income of an individual?
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A：
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The consolidated income of an individual includes the business income, income from professional practice, income from salaries and wages, income from interest, income from lease and from royalties, income from self-undertaking in farming, fishing, animal husbandry, forestry, and mining-amount of income, income from property transactions, income from contests and games and from prizes and awards won by chance, separation income and others income. The total amount of the aforementioned various incomes in the whole year is the total consolidated income of the taxpayer, spouse, and dependents.
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Q：
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What is the Taiwan business income?
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A：
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The dividends received by each shareholder of a company, the earnings received by each member of a cooperative, the earnings received by each investor of other juristic person and the earnings payable each year to each partner of a profit-seeking partnership, the earnings derived in each year by a sole proprietor from the operation of business, and the earnings derived by an individual from incidental trading activities shall all come under this Category of income.
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Q：
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For the Taiwan income tax systems that effective from 1 January 2018, how is the new taxation system for dividends income of the optimized Taiwan income tax system stipulates?
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A：
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The optimized plan abolished the system of two-tax combined in one, it changes to a new taxation system for dividends income and effective from 1 January 2018, the individual that received the dividend income could be taxed by “Consolidated tax deducts the dividends income deductible” or “Single tax rate to calculate tax”. Therefore, the individual could choose a preferable way to pay the tax. If the individual declares the individual income tax online, the system will assist the taxpayer to choose the most advantageous way.
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Q：
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How is the business income being taxed if the individual using the consolidated tax deducts the dividends income deductible?
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A：
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The gross amount of tax payable, computed in the annual consolidated income tax return for the current year may be offset from the amount of tax credit, based on 8.5% of the total amount of the dividends and earnings distributed by the taxpayer and there will be a credit ceiling set at TWD 80,000 per year per income tax return. For the taxpayer that the total amount of dividends is below TWD 940,000, they will have the full deductible amount. If the tax deductible is greater than the tax payable, it means that the dividends income that deductible will still have a balance after deducting the tax payable, the balance remaining can be returned.
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Q：
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How is the business income being taxed if the individual using the single tax rate to calculate tax?
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A：
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No matter the various income of taxpayer or the spouse calculate combinedly or separately, the dividends and earnings distributed are not included in the total amount of income, the total dividends and earnings should calculate separately according to the single tax rate of 28%. The amount of the dividends and earnings calculated shall add on with the taxable amount of the various income, to calculate the tax refundable.
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FAQ
