◎ Net income earners paid according to the contract all kinds, should still apply for withholding payment of the total
Ministry of Finance Taipei IRS said unit when withholding rent to all types of income, royalties, etc., if agreed upon by the withholding tax burden on the unit, but excluding the amount of tax withheld to apply withholding, the withholding unit short withholding due punished.
Description council, according to the provisions of Article 88 of the Income Tax Act, when the withholding agent to pay all kinds of withholding income range, in accordance with the provisions of the tax shall be deducted or withheld withholding rate approach and pay it in accordance with regulations. Such as: domestic profit-seeking enterprise to pay royalties to foreign companies, should be paid at the time of payment from the total amount of tax to deduct 20% of the net and then paid to foreign companies; but if the contract agreed upon by the domestic burden of withholding profit-seeking enterprise tax which is the subject of foreign companies actually achieved premium paid, plus the total amount of which shall be borne after the payment of withholding tax, as calculated on the basis of the withholding tax.
Council Examples are as follows, assuming the domestic foreign Company A Company B to pay royalties, agreed foreign companies each paid-B 500 million, the payment of Company A and Company B premium shall be paid in terms of net pay 5 million yuan a total of 6.25 million yuan [5 million yuan ÷ (1-20%)], then multiplied by withholding payment of the total amount of 6.25 million yuan (20%) to calculate withholding taxes 1.25 million yuan (6.25 million yuan × 20%) .
The council called on the unit at the time of payment of withholding income, as agreed upon by the withholding tax burden on the unit, make sure to pay attention to the withholding agent withholding tax calculation, in order to avoid miscalculation, resulting in short withholding tax and penalty.
