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Taiwan Guidance on Using Applicable Net Profit Ratio and Domestic Profit Contribution Ratio for Withholding Tax on Electronic Services

|Approved Changes|Taiwan
Taiwan

Taiwan's Ministry of Finance has issued a release providing guidance on the calculation of taxable income based on the applicable net profit ratio and domestic profit contribution ratio for withholding tax purposes in cases where a withholding agent (a Taiwan enterprise) bears the withholding tax on Taiwan-source income when paying compensation to a foreign enterprise for a cross-border sale of electronic services. When calculating taxable income based on the applicable net profit ratio and …

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