Local Citizens with Dual Nationality Deriving Income from Sources in the R.O.C. by Using Different Identities Shall Combine Their Income in the Declaration


National Taxation Bureau of Taipei, Ministry of Finance (NTBT), states that if an R.O.C. resident with dual nationality providing services rendered within the territory of the R.O.C. derives income from sources in the R.O.C. by using two identities, he/she shall combine all income sources of two different identities to calculate the tax payable according to the Income Tax Act.
For example, Mr. A holds dual nationality. He was hired as a General Manager of Company X by using the R.O.C. nationality in 2016, meanwhile, and he was also hired as a consultant in the Taiwan branch office of foreign Company Y by using his foreign nationality as Mr. B. Company X and the Taiwan branch office of foreign Company Y reported withholding and non-withholding tax statement by using Mr. A's R.O.C. ID number and Mr. B's ARC number separately. After investigating, NTBT found out that Mr. A and Mr. B are the same taxpayer. Mr. A only declared the income from Company X, but he did not declare the income from the Taiwan branch office of foreign Company Y in his individual income tax return of 2016. Therefore, NTBT accessed the income tax by combining the income of Company X and the Taiwan branch office of foreign Company Y. In addition, Mr. A was subject to a fine.
NTBT reminds that a local citizen with dual nationality shall combine any sources of income to calculate the income tax payable regardless whether the income are obtained from local nationality or foreign nationality; if anyone declares the income tax return separately by using two identities, once it is found by the tax authority, he/she shall be subject to pay back the tax due and a fine.
(Contact person: Third Examination Division Head Mr. Tsai, TEL: 2311-3711, ext. 1760)

Reference URL:https://www.mof.gov.tw/Eng/Detail/Index?nodeid=319&pid=82550