2011-01-10 09:46:30

The Ministry of Finance announced that the withholding tax rate on monthly fixed salary, part-time income, and annual bonus is decreased from 6 percent to 5 percent starting from January, 2011. A taxpayer, whose annual bonus is less than TWD $68,501, won’t have to pay off the income tax withheld. If a taxpayer’s annual bonus is more than TWD $68,501, the bonus is subject to 5 percent income tax withholding. For example, Mr. Good receives a TWD $50,000 annual bonus in January, 2011; the annual bonus is not subject to income tax withheld because the amount is less than TWD $68,501. Ms. Earth receives a TWD $100, 000 annual bonus. She is subject to pay off TWD $5,000 which is the 5% income tax withheld because the amount is more than TWD $68,501.