If a taxpayer has income from sources in the Mainland, he or she shall declare comprehensive income tax in accordance with regulations.

The Northern District National Taxation Bureau of the Ministry of Finance stated that according to Article 24 of the Act Governing Relations between the People of the Taiwan Area and the Mainland Area, if the people, legal persons, groups or other institutions of the Taiwan Area have income from sources in the Mainland Area, they should be subject to income tax together with the income from sources in Taiwan Area. However, the tax already paid in the Mainland Area may be deducted from the tax payable, and the upper limit of the deduction shall not exceed the increase in the tax payable calculated in accordance with the applicable tax rate in Taiwan due to the addition of the Mainland Area source income.

The bureau further explained that it recently discovered that a local taxpayer named Mr. A had omitted to report the 2011 comprehensive income tax settlement declaration of NT$20,000 of profit income from mainland China and NT$3,500,000 of income from property transactions together with the tax return. Although Mr. A claimed to use the Internet to declare the comprehensive income tax for that year, because the income from mainland China was not within the scope of income provided for inquiry by the tax authorities, that is, the taxpayer's income information for the tax year inquired from the tax authorities during the comprehensive income tax declaration period, and the income information and tax calculation notice downloaded through the Internet did not include the income information from mainland China. The bureau imposed additional taxes and imposed a fine.

The bureau specifically reminds the public that if they have this type of income but have failed to declare it, they should promptly report the unpaid taxes and interest to the National Tax Bureau in their place of residence in accordance with Article 48-1 of the Tax Collection Act before the tax authorities investigate or report it to others, so as to avoid being subject to unpaid taxes and penalties after being discovered. If the public has any questions, please call the toll-free service number 0800-000321 or contact the nearest branch, tax office or service center. The bureau will provide consulting services wholeheartedly.

Contact person for press release: Mr. Huang, Legal Affairs Team
Contact number: (03) 3396789 ext. 1650