Taiwan: Pre-approval of net profit and domestic profit contribution ratios to calculate withholding tax

This process aims to streamline tax refunds and reduce capital issues from excess withholding.

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April 17, 2025

Taiwan's Ministry of Finance in February 2025, issued a tax news reminder stating that foreign profit-seeking enterprises may apply the applicable net profit ratio and domestic contribution ratio for income tax calculation based on existing regulations. 

This process aims to streamline tax refunds and reduce capital issues from excess withholding, allowing foreign enterprises to apply with relevant documentation to the National Taxation Bureau before receiving income.


For more information, contact a KPMG tax professional in Taiwan:

Vincent Lin | vincentlin@kpmg.com.tw

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