Individual Overseas Income Exceeding NT$1 Million Shall Be Included in Basic Income
The National Taxation Bureau of the Southern Area, Ministry of Finance (hereinafter “The Bureau”) reminds the public that annual overseas income exceeding NT$1 million in each filing unit must be included in the amount of basic income of individuals when filing individual income tax. Since overseas income is not within the scope of income information provided by the tax authorities, taxpayers whose individual basic income exceeds NT$6.7 million shall truthfully calculate, file, and pay income basic tax.
The Bureau stated that overseas income, derived from sources outside the Republic of China and excluded from gross consolidated income, as well as the income exempted from gross consolidated income in accordance with Paragraph 1, Article 28 of the Act Governing Relations with Hong Kong and Macau shall be included in the calculation of the individual income basic tax based on Subparagraph 1, Paragraph 1, Article 12 of the Income Basic Tax Act. Otherwise, in addition to being liable to pay the tax owed according to the relevant provisions, taxpayers are subject to fines under Article 15 of the aforesaid Act.
For instance, in 2021, Mr. A had domestic business income and employment income totaling NT$0.8 million, as well as having overseas business income of NT$5.1 million, interest income of NT$0.9 million, and property transactions income of NT$2.1 million. When Mr. A filed the annual income tax return of 2021, he only declared the incomes and deductions downloaded from the online filing system, resulting in an omission of overseas income of NT$8.1 million. Upon detection by the tax authority, Mr. A was subjected to an additional tax payment and a fine.
The Bureau would like to remind the public that during the individual income tax filing season, income information downloaded via certificates or obtained from the tax authorities is just for reference. Taxpayers are still required to declare their income truthfully. Also, if an individual received interests or dividends from investing in overseas funds, or gained income from property transactions in overseas assets, whether having been noted by financial institutions or not, he or she should take the initiative to confirm and file the tax return since individual income tax is implemented as a self-declaration system. In the case of failing to declare the overseas income, taxpayers may be remitted from punishments by voluntarily correcting their declaration and making supplementary payment covering the tax amount and surcharging interest, as long as it is neither a case brought about by an informant, nor a case under investigation by an investigator appointed by the tax authorities or the Ministry of Finance.
Press Release Contact: Mr. Chiang
Legal Affairs Division
TEL: 06-2298128
Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=1694e6ebaa7e4caab1e761ed83fa1cd3