Taiwan MOF Clarifies Withholding Tax Obligations on Dividends Paid to Nonresident Individuals, Specified Enterprises

The Taiwanese Ministry of Finance Oct. 1 clarified the withholding tax obligations on dividends paid to nonresident individuals and specified enterprises. The clarification includes that: 1) dividends distributed by a company to nonresident individuals and profit-seeking enterprises with their head offices located outside Taiwan should be withheld by a withholding agent at the time of payment; 2) the specified persons receiving the dividend income must have their withholding agents pay the withheld taxes to the National Treasury within 10 days of withholding; 3) the withholding agents must issue withholding certificates, which must be submitted to the relevant tax authorities for ...