According to “Occupational Safety and Health Act”, it is mandatory for employers to implement health examination on employees. In the condition of employees whose content of works is potential to damage their health or particular subjects from other government entities, the particular health examination items still have to be taken as well. Employers shall take the responsibility to restore the records of health examination and pay the expenses.

In regards to the taxation, the expenses of regular and special health examinations can be exempted from listing into the employees’ salary income, which would not make the employees face a huge tax burden, but the application of withholding and tax return by employers shall still take the nature of paid subjects into consideration upon the payment of health examinations to contracted medical institutions. The way of applications can be divided into the below 3 categories:

First of all, if the party of receipt is a public hospital, the employees can be exempted from application of withholding taxes as well as submission of withholding tax statements, which is the most simple way to proceed.

Secondly, in the circumstance that the entity to proceed health examination is a private foundation hospital or a juridical association, it is also free from withholding the income taxes, but due to the entity affiliated as non-government organizations, it is required to submit the withholding tax statement to the revenue service office and select the income category as “Other Incomes” by the end of January at the next year from the date of payment.

If the actual conditions cannot be affiliated with the abovementioned two categories, it is possible that the employees seeks for a general hospital, examination center, or clinic for employees’ health examinations. These entities are different from governments and nonprofit organizations, which shall be categorized as the prescribed articles in “Income Tax Act” to conduct businesses. Therefore, employers have to proceed withholding tax returns in the regulated deduction rate and deduction amount upon the payment to these entities by the end of January at the next year to the revenue service office and the category of income shall be “Income from Professional Practice”.

The abovementioned summary as the following table:

	Withholding upon the payment	Tax return by the end of January at the net year	Income category
Public Hospitals	Not required	Not required	N/A
Private Foundation Hospitals or Private Juridical Hospitals	Not required	Required	Other Incomes
General Hospitals, Examination Centers, Clinics	Required	Required	Income from Professional Practice