How a married couple file their income tax in Taiwan Q&A

1. Should a couple file their income tax returns jointly?

According to Article 15 of Income Tax Act, the income of a married couple must be filed jointly even in the case they live in different places.

2. Can the tax payable be calculated separately for a married couple?

Yes, when a couple jointly filing their income tax, they can choose to calculate the tax payable separately or in the consolidated basis. The taxable income can be separately calculated for salary income or other comprehensive income. The couple can choose the lowest result for their income tax reporting.

3. Is it necessary to report the income paid to shareholders/directors of a limited company? How about the income paid to proprietor or partners of an unincorporated business?

You need not report dividends paid to shareholders of a limited company because dividends are not taxable. On the other hand, salaries and directors’ fees received by directors are chargeable to Salaries Tax and should therefore be reported by means of form IR56B.

It is not necessary to file form IR56B for the proprietor /any partner of an unincorporated business or his spouse. The remunerations paid to such person are not allowable deductions under the Inland Revenue Ordinance and have to be adjusted in computing the profits chargeable to Profits Tax.

4. If a couple gets married or divorced during the interim of the year, how should they file their taxes?

In the case that a couple get married or divorced during the interim of the year, they may choose to file income tax returns separately only for that related fiscal year. Presentation of a certificate of marriage or divorce is required at the time of filing.

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