Taiwan MOF Clarifies Tax Deduction Rules on Foreign Income of Profit-Seeking Enterprises

The Taiwanese Ministry of Finance Aug. 20 clarified tax deductions rules on the foreign income of profit-seeking enterprises. The clarification includes that: 1) business entities with their headquarters in Taiwan should declare and pay corporate income tax on all their business income earned both domestically and abroad; 2) in cases where foreign income has already been taxed according to the tax laws of the source country and the relevant documentation can be provided, it may be deducted from the total taxable income calculated, with the deduction amount not exceeding the increase in the calculated taxable amount that results from including ...