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Q:
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How to declare for integrated income tax if I run a tutoring class in Taiwan?
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A:
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In principle, private running tuition class shall register the founder who applied for the establishment as the income earner, who shall take the tuition and miscellaneous fees collected, after deducting the cost and necessary expenses, and declare for the integrated income tax. If the business right or ownership belongs to other income earner, he/ she shall be the subject of taxation and income tax shall be levied. As for tuition classes run by profitable enterprise, if they are established with the approval of the competent education authority, the income will be filed and levied for corporate income tax by the enterprise.
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Q:
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How to declare for integrated income tax for the subsidies of Taiwan employee welfare committee?
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A:
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All subsidies paid to the employee welfare committee of a profitable enterprise, in terms of cash, gifts, object, etc., are considered to be the recipient’s other income and shall be declared for integrated income tax. There is no withholding during the payment, but the committee shall follow the provision of Income Tax Act Article 89 Paragraph 3, and declare the withholding statement to the National Taxation Bureau on or before 31 January of the following year.
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Q:
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Is integrated income tax applicable to compensations in Taiwan?
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A:
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Compensation for death of an individual (regardless of one’s stature) received in accordance with applicable acts or regulations by the bereaved family of a person who died in performing official duties, shall be exempted of income tax.
For person who died not in performing official duties:
Pension or compensation for death in one lump sum or by installments received in accordance with applicable acts or regulations by the bereaved family, with the lump sum or the total amount paid in all installments in one year calculated together with the amount of the Separation Income provided in Income Tax Act Article 14 Paragraph 1, with a total amount received not more than the deductible amount provided in Article 14 Paragraph 1 Category 9, shall be exempted of income tax.
For compensation received in one lump, the amount received over the deductible amount provided in Article 14 Paragraph 1 Category 9, is considered as variable income, and shall filed half of the amount with withholding statement and levied as other income of the bereaved family.
For compensation received in installment, the amount received over the deductible amount provided in Article 14 Paragraph 1 Category 9, shall filed the amount with withholding statement and levied as other income of the bereaved family.
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Q:
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Is integrated income tax applicable to alimony in Taiwan?
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A:
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The property that given to divorced spouse according to divorce agreement or a court judgement shall not be levied integrated income tax.
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Q:
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Is integrated income tax applicable to the death in service benefit paid by company in Taiwan?
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A:
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The death in service benefit paid by company is considered as the right left by the deceased and shall incorporate to the heritage of the person and levied for inheritance tax. Integrated income tax is not applicable.
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