International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Taiwan adjusts withholding tax regime

Changes to Taiwan’s tax law mean that gains from structured notes are no longer regarded as interest income and so should be liable for withholding tax.

However, this announcement contradicts steps taken by the country’s Ministry of Finance.

Announced at the end of 2009, amendments to the country’s Income Tax Act mean that, theoretically, gains from structured notes traded via offshore banking units should be subject to withholding tax, whereas in the past, such gains were tax exempt.

However, the Ministry of Finance has just issued a directive that temporarily suspends the withholding obligation on gains for structured notes traded via offshore banks for six months.

The six month suspension will allow banks to re-programme their computer systems.

The Ministry indicated that if the directive is ratified within the 6-month period and has a retroactive effect from January 1 2010, withholding tax shall not apply from January 1 2010.

However, if the amended law is not ratified by June 30, withholding tax on gains from structured notes will be imposed from January 1 2010.

more across site & bottom lb ros

More from across our site

Mauro Faggion appeared cautiously optimistic as the European Commission waits to see whether all 27 member states will accept its proposal.
The global minimum rate also won’t entirely stop a race to the bottom, according to a tax director speaking at an ITR conference in London.
The country’s tax authorities are not interested in seeing transfer pricing studies any more, it was claimed at an ITR industry conference in London.
The controversial measure is being watered down after criticism from the European Central Bank.
More than 600 such requests were made in 2022, while HMRC has also bolstered its fraud service, it has been revealed.
The General Court reverses its position taken four years ago, while the UN discusses tax policy in New York.
Discussion on amount B under the first part of the OECD's two-pronged approach to international tax reform is far from over, if the latest consultation is anything go by.
Pillar two might be top of mind for many multinational companies, but the huge variations between countries’ readiness means getting ahead of the game now, argues Russell Gammon, chief solutions officer at Tax Systems.
ITR’s latest quarterly PDF is going live today, leading on the looming battle between the UN and the OECD for dominance in global tax policy.
Company tax changes are central to the German government’s plan to revive the economy, but sources say they miss the mark. Ralph Cunningham reports.