25 January 2018 Taiwan enacts tax reform proposals Taiwan's Legislative Yuan (Parliament) has enacted the tax reform proposals that were announced on September 1, 2017. Key features of the tax reform include: (i) an increase in the corporate income tax rate from 17% to 20%; effective for tax years beginning on or after January 1, 2018; (ii) a decrease in the undistributed earnings tax rate from 10% to 5%; effective for tax years beginning on or after January 1, 2018; and (iii) the undistributed earnings tax paid at the corporate level can no longer be distributed to foreign shareholders as a credit against the dividend withholding tax; effective for distributions made on or after January 1, 2019. Document ID: 2018-0193 |
