Common Mistakes in Filing Alien Individual Income Tax Return

National Taxation Bureau of Kaohsiung, Ministry of Finance (NTBK) expressed that, the alien individual income tax return operation in Year 2017 has been smoothly accomplished. We thank the taxpayers and their agents for following all stipulations regarding the declaration affairs. NTBK summarize some common mistakes for reference.
1. The withholding agencies fails to declare the withholding statements for non-residents on a monthly basis: According to the regulations in Article 3 of “Standards of Withholding Rates for Various Incomes”, the tax withholders shall withhold 6% or 18% of the non-resident’s total monthly payment; and according to Article 92 of the Income Tax Act, the tax withholders shall pay the withheld tax amount and declare the withholding certificates within 10 days of withholding date. For this type of mistakes on declaration of withholding certificate, the tax withholders shall make correction of withholding statements to the tax authority.
2. Mistake on applicable withholding rate for the non-residents: non-reside salaries not exceeding 1.5 times the monthly baseline salary shall be withheld 6% of the total payment amount and 18% for the exceeding portion. For this type of mistakes on withholding rate, the tax withholder shall make correction of withholding statements to the tax collection authority-in charge, pay back the tax to be withheld or apply for tax refund of overpaid tax. If there are 2 payments of salaries being paid in the same month, except in the situations of advance payment due to departure from our country (resignation) or the payment is delayed to the next month due to that the payment day is a holiday, so the payment may be exempted from combined into the actual payment month for calculation of the total salary amount, the applicable salary withholding rate for non-resident shall be calculated in the total monthly payment amount.
3. Exemption and standard deduction in the departure tax return is not deducted according to the ratio of his/her residing days in a taxable year: according to Article 17-1 of the Income Tax Act, the amounts for exemption and standard deduction shall be calculated in proportion to the total number of days she/he stayed in the taxable year.
4. The signature in the proxy statement shall be identical with the one shown in the passport: if the taxpayer has departed from the territory of our country and he/she cannot sign the proxy statement again, then the employment agreement or other documents which may prove the signature could be summited as supplementary evidences.
5. Supporting documents is not attached for proving the existence of dependents: if any dependents resides outside the territory of our country, relevant supporting documents shall be attached, such as proof of relationship, proof of supporting, proof of being alive, certificate of being at school
6. Insufficient supporting documents for itemized deductions: such as failure of providing the doctor’s diagnosis or proof of rent payment or receipts of wrong fiscal year are attached and so on.
NTBK called on that the taxpayers should pay attention on whether there is any mistake as mentioned above while filing the tax return, in order to protect their rights.#233

2017-06-21 Ministry of Finance News


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