(Taoyuan) The National Taxation Bureau of the Northern Area (NTBNA), Ministry of Finance indicates that for the dividends and earnings distributed from a company in 2018, and such dividends or earnings that are earned in the year 1998 or any ensuing year thereafter, the resident individual shareholder filling out a "Dividend Statement" can either choose:
(1)    To incorporate dividends and earnings into their annual gross income, and calculate their tax based on progressive income tax rates, with a tax credit of 8.5% of the total dividends and earnings amount, with the credit ceiling set at NT$80,000 per household.
(2)    To compute the tax on the total amount of dividends and earnings separately from their gross income with the single tax rate of 28%.
      In addition, NTBNA explains that for the abovementioned dividends and earnings, a company should issue the non-resident individual shareholder a "Withholding & Non-Withholding Tax Statement". If the non-resident individual shareholder continues to stay in the R.O.C. for 183 days or more in the same taxable year, he or she (on thus attaining the status of resident) shall ask the company to correct the "Withholding & Non-Withholding Tax Statement" to a "Dividend Statement" and file his or her tax return in the abovementioned methods.
     If you have any questions, please call the toll-free number 0800-000-321 for professional service.