The Amended Withholding Rules Enforced on January 1, 2025
The amended income tax withholding rules come into force on January 1, 2025. In the new system, the tax withholder for the payment of income has been amended to be the enterprise or organization itself starting from January 1, 2025 onwards. However, for payment of income no later than December 31, 2024, the original withholding rules shall apply, which indicates the tax withholder is the manager of the withholding agency or the person-in-charge of the enterprise.
The National Taxation Bureau of the Southern Area, Ministry of Finance stated, according to the amended withholding rules, the tax withholder is amended as the enterprise, organization, institution or school itself, in contrast with the person-in-charge of the enterprise or the manager of the withholding agency under the original withholding rules. Such an amendment is more in line with the principle of accountability in administrative law. In addition, as for the payment of income subject to withholding of a non-resident, the period of all the taxes withheld, submission, and issuance of the withholding tax statements shall be extended for 5 days in the case that 3 national holidays occur in succession during the period, just like the current rule of residents, so as to ease the workload for the tax withholder during consecutive holidays.
For example, Company A paid a 2024 year-end bonus to a non-resident individual on January 23, 2025 and withheld a tax payable. In accordance with the amended withholding rules, the tax withholder shall be Company A. The period for the payment of all the taxes withheld, submission, and issuance of the withholding tax statements was 10 days from the date of withholding, by February 1, 2025. However, since January 28 to January 31, 2025 was during Lunar New Year holiday, the above-mentioned period shall be extended for 5 days (by February 6, 2025).
Press Release Contact: Ms. Lin
Individual Income, Estate And Gift Tax Division
TEL: 06-2223111 ext.8065
Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=16b5737316204229995e8bea7f6f8f66