The company pay dividends to shareholders (Individuals) residing in Taiwan; are these dividends subjected to withholding tax. How much is the withholding tax that the company need to pay dividends to its shareholders who are natural persons in Taiwan?
Panwa : Taiwan don’t have the double tax agreement with Thailand before. However, as stated under the new Section 50(2)(e) of the Revenue Code, the payer is obliged to withhold tax at the rate of 10 % under and submit with the form P.N.D. 2 within 7 days from the end of the month in which the payment is made.
Start from January 1, 2013 until now, Thailand have double tax with Taiwan. For pay the dividend to receiver in Taiwan which has a double tax treaty and requires tax withholding and remittance under Article 10 of the Taiwan Interest Payment Convention at the following rates :
(A) 5% of the dividend amount In the event that the beneficial owner directly owns at least 25 of the dividend paying company’s capital
(B) 10% of the dividend amount, other cases
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