A tax withholder is a person who pays income to a taxpayer and withholds tax from such income. The tax withholders for each kind of income are as follows:
- For the dividends distributed by a company to an individual not residing in the Republic of China or a profit-seeking enterprise having its head office outside the Republic of China; the earnings distributed by a cooperative to its members not residing in the Republic of China; the earnings distributed by other juristic persons to its investors not residing in the Republic of China; or the earnings distributed or payable by a profit-seeking enterprise organized as a sole proprietorship or a partnership to its sole proprietor or partners not residing in the Republic of China, the tax withholder shall be the said company, cooperative, other juristic person, sole proprietorship, or partnership.
- For the income from salaries, interest, rentals, commissions, royalties, fees for professional practices, prizes or awards won from skills competitions or by chance, retirement pay, severance pay, separation pay, resignation pay, life-time pensions, old-age pensions not covered by insurance benefits, rewards for information or accusation, transactions in structured products, and the income paid to a foreign profit-seeking enterprise without fixed place of business or business agent within the Republic of China, the tax withholder shall be the organization, non-departmental public body, institution, school, enterprise, administrator of bankruptcy estates, practitioner of profession, or trustee of a trust deed.
- For the profit-seeking enterprise income tax on income stipulated in Subparagraph 3 of Paragraph 1, Article 88 of the Income Tax Act, the withholder shall be the business agent or the payer of such income.
- For the profit-seeking enterprise income tax on income receivable by a foreign motion picture enterprise, the withholder shall be the business agent or the payer of such income.