|
Q:
|
How does tax be levied for the lottery winning prizes held in Taiwan?
|
|
A:
|
According to the provision of Income Tax Act Article 14 Paragraph 1 Category 8 Subparagraph 3, prize money from lottery tickets under the auspices of the government, except that tax payable shall be withheld in accordance with he provision of Article 88, shall not be included in the gross consolidated income. Therefore, if the prize-winning person is an individual (no matter the individual is living within or outside R.O.C), and the prize ticket (raffle, bet) does not exceed NT$5,000, shall be exempted from tax being withheld. For prize exceed NT$5,000 per ticket, 20% of the full payment is withheld. Moreover, since the mentioned prize is subject to separate taxation, it would not be involved in the integrated income tax of the prize-winner, and the tax withheld shall not be deducted as tax payable or apply for refund of tax withheld.
|
Q:
|
Does the prize of selected piece of exhibition held in Taiwan subject to integrated income tax?
|
A:
|
The question would be explained in two parts:
If the selected piece is returned to the exhibitor after the exhibition, the prize for it is considered as a prize for competitions or contest, and the winner should incorporate the prize into the annual integrated income tax declaration.
If the selected piece is not returned to the winner and the copyright belongs to the organizer, the prized for it is considered as manuscript fee income, which is related to royalties, scores, composition, screenwriting, comics, and hourly fee for lecture, etc. If the total income for the whole year does not exceed NT$180,000, the integrated income tax can be exempted. If the total income exceeds NT$180,000, the exceeded amount can be deducted from the cost and necessary expenses first, then the remaining balance will be incorporated into the individual integrated tax for declaration.
|
Q:
|
Does old-age pension, pension and severance pay subject to Taiwan integrated income tax?
|
A:
|
Income received by individuals from retirement pension, severance pay, separation pay, service pay, lifetime pension, old-age pension from non-insurance payment and insurance payment for national pension insurance in accordance with the provision s of the Labour Pension Regulations, the income amount shall be calculated in accordance with Article 14 Paragraph 1 Category 9. The amount exceeded the tax exemption shall be incorporated into the total integrated income declaration, excluding the amount levied from yearly income tax and its fructus of the savings and national pension insurance paid in accordance with the labour pension regulations from the one’s salary over the years.
|
Q:
|
How to count the service years for military personnel, civil servants, teachers and government officials who receive separation payment in one lump?
|
A:
|
According to Income Tax Act Article 14 Paragraph 1 Category 9 Subparagraph 1, military personnel, civil servants, teachers and government officials who receive separation payment in one lump, shall calculate their “separation service years” in accordance to actual service years. “Separation service years” refers to the time when salary was paid by government treasury. However, service years already counted for separation and resignation payment or being as mechanic or worker, shall not be included if one had applied for separation pay.
Military personnel, civil servants, teachers and government officials who retire after the new public service pension system implemented, the service years of separation service years, after the new public service pension system implemented, shall combine in the previous mentioned “actual service years”.
|
Q:
|
What is other income in Taiwan? How to declare for integrated income tax?
|
A:
|
The income, except profit income, income from professional practice, salary income, interest income, inform from lease, income from royalties, income from transaction, income from self-cultivation, fishery, animal husbandry, forestry and mining, income from contests and games and from prizes and awards won by chance and separation income, of taxpayer’s total integrated income, belongs to “other income”. Taxpayer shall take the amount of this income after deduction of cost and necessary expenses and incorporate it into total integrated income tax, for total integrated income declaration. However, reward of information or accusation and transaction income from securities firms and banks engaging in structured notes, shall not be incorporated into total integrated income, except for tax withholding in accordance with Article 88.
|
FAQ
