Individual Income Tax-what are the changes/benefits for this year’s filings : (A person who has no domicile in Taiwan but resides in Taiwan for a period of 183 days or more during a taxable year shall file the returns before the end of May) Individual Income Tax-what are the changes/benefits for this year’s filings : (A person who has no domicile in Taiwan but resides in Taiwan for a period of 183 days or more during a taxable year shall file the returns before the end of May)  First: Increase in Exemptions & Deductions  Personal Exemption: NT$82,000 for each individual; NT$123,000 for the elderly who are at least seventy years old;  Standard Deduction: NT$76,000 for singles; and NT$152,000 for married couples;  Salary Deduction and/or Handicap Deduction: NT$104,000 respectively. “May Day”- It’s Time to File Your Tax! 1

 Second: Increase in Exemption for Severance benefit  If received in one lump sum, the taxable amount is calculated as follows:  If the total amount received in one lump sum is less than NT$169,000 multiplied by the number of service years at the time of separation, the taxable amount shall be considered zero;  If the total amount received in one lump sum is more than NT$169,000 multiplied by the number of service years at the time of separation, half of the portion of the amount over NT$169,000 but less than NT$339,000 multiplied by the number of service years at the time of separation shall be the taxable amount  The portion of the amount over NT$339,000 multiplied by the number of service years shall totally be considered the taxable amount. If the last service year is less than 6 months, it shall be deemed as half a year and, if over 6 months, it shall be deemed as one year.  If received by installments, the taxable amount shall be the balance of the total amount of all installments received in one year after the deduction of NT$733,000 。 2

 Fourth: Inquiries for insurance premiums, interest paid for housing mortgages and special deduction for college tuitions can be made directly at the tax offices or via the Internet with proper identification.  Third: Free of service charge for payments of tax at convenience stores or thru bank cards (service charges for payments thru credit cards may vary in accordance with each issuance bank). 3

Business Income Tax: For those changes in Business Income Tax that relates to foreigners: Change in formula of foreign shareholders’ entitlement to income tax withheld for undistributed earnings. For those changes in Business Income Tax that relates to the business entities in Taiwan: Please consult with Chen & Wen, CPAs for more information. 4