Taiwan goes soft on residency rules while granting treaty benefits

Taiwan will apply the country’s tax residency rules leniently while granting tax treaty benefits, the Finance Ministry has said.

The Finance Ministry clarified that the tax authority will “leniently” recognize the tax residence certificate issued by a tax treaty partner if the same is presented within six months from the date of issuance.

“This will solve the problem of inconsistency in the content and validity of the certificate, or the inability of a taxpayer to obtain the certificate in a timely manner,” the Finance Ministry said.

The Finance Ministry explained the procedure in the form of an illustration.

Taiwan currently has 34 tax treaties in force. The Finance Ministry said it will continue to expand its tax treaty network.