萬國法律事務所

Taiwan’s Ministries of Finance (MOF) and of Economic Affairs (MOEA) have reached an agreement on five principles with respect to the suspension of taxes on employee bonuses. The five principles agreed upon relate to: (a) certain applicable employees, (b) certain applicable amounts, (c) certain applicable lengths of service years, (d) the establishment of personal accounts for management purposes, and (e) tax reporting obligations. Details of the proposed tax suspension are still being negotiated between the MOF and the MOEA.

Currently, enterprises in the biotechnology industry and in small- and medium-sized enterprises enjoy the benefit of tax suspension on employee bonuses. The MOF agreed that large enterprises such as listed companies can also enjoy the benefit of tax suspension, provided that such companies need to reward their employees by giving shares in the companies. The suspension of the tax will not cause the government to face a shortfall in tax revenues.