National Taxation Bureau indicated that withholding tax for recurring payments should be calculated by using monthly total income, no matter it is paid at once or is separated into several payments. Only withholding tax for variable payments which are paid under different pay items can be calculated separately.
In accordance with the Regulations Governing the Withholding of Tax on Wages, taxpayer should follow either a fixed rate or tax table. Otherwise, there will be penalty applied.

Please see the below example –

Employee A get weekly salary NT 30,000 and Annual bonus NT 60,000 on Jan’16.
Employee A choose fixed rate 5% to calculate his withholding personal income tax.

*** Below is the wrong example***

The announcement was made only in Chinese. For more information, please visit the links below (in Chinese).

  • Tax bureau announcement – Click here
  • Standards of Withholding Rates for Various Incomes – Click here