[World Tax News] Taiwan MoF Advises Foreign Individuals to Assess Tax Residency Status and More

Editorial Team – [2026] 186 taxmann.com 524 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week:

1. Taiwan Ministry of Finance Advises Foreign Individuals to Carefully Assess Tax Residency Status for Tax Compliance

Taiwan’s Ministry of Finance has stated that foreign nationals filing individual income tax returns in Taiwan are subject to different filing requirements based on their tax residency status. Taxpayers should carefully determine their status to avoid any legal non-compliance. Tax residency status is classified as follows:

• Non-resident (stay of less than 183 days)
• Resident (stay of 183 days or more)

The Ministry of Finance has clarified that, for foreign nationals working in the Republic of China (R.O.C.), the number of days of stay is determined based on passport entry and exit stamps or the “Certificate of Entry and Exit Dates” issued by the National Immigration Agency, Ministry of the Interior. Where there are multiple entries and exits during a taxable year, the days of stay are aggregated. If a foreign national stays in the R.O.C. for 183 days or more during a taxable year, he or she is treated as a resident for tax purposes.

Residents are required to file an individual income tax return reporting the previous year’s total consolidated income, exemptions, and deductions with the tax authorities between May 1 and May 31 each year (where May 31 falls on a holiday, the deadline is extended to the next working day). Any tax payable must be discharged at the time of filing. Further, if a taxpayer leaves Taiwan before the end of the year, the tax return must be filed and the tax paid prior to departure.

If a foreign national required to file an individual income tax return fails to do so, and the tax authority subsequently determines that taxable income is liable to assessment, the taxpayer may, in addition to payment of the tax due, be subject to a penalty of up to three times the amount of underpaid tax.

The Ministry of Finance further advises foreign nationals working in the R.O.C. to carefully compute their days of stay. In cases involving tax disputes, communication and coordination issues, petitions or complaints, or consultations relating to administrative remedies, assistance may be sought from the Tax Ombudsman. Applications for taxpayer rights protection may be submitted through various channels, including documentation, fax, in-person interviews, email, telephone, and online platforms. For further information regarding taxpayer rights protection, taxpayers may visit the National Taxation Bureau of the Central Area website and access the “Taxpayer Rights Protection Zone” available under the featured section on the homepage (https://www.ntbca.gov.tw).

Source: Notice

2. Swiss Federal Council Opens Consultation on Amendment to Minimum Tax Ordinance

The Swiss Federal Council has initiated a consultation process for revising the Minimum Tax Ordinance to implement parliamentary motions seeking delayed application of a specific OECD administrative instruction in Switzerland.

Since January 1, 2024, large multinational groups in Switzerland have been subject to the OECD’s 15% minimum tax regime through the Minimum Tax Ordinance. The ordinance ensures alignment with the OECD Model Tax Rules and aims to prevent Swiss companies from exposure to foreign minimum taxation and legal uncertainty.

Parliamentary motions 25.4392 and 25.4399 request that an OECD administrative instruction relating to the treatment of deferred tax assets be applied in Switzerland only from fiscal year 2025 onwards, instead of retrospectively from 2024. The Federal Council had opposed the motions on the ground that the proposal departs from internationally agreed OECD standards.

The proposed amendment is expected to have no impact on most affected companies. However, a few entities may witness a reduction in Switzerland’s domestic top-up tax (QDMTT) for 2024, which could be offset by the application of an international top-up tax (IIR) in another jurisdiction. While the overall tax burden may remain unchanged, additional foreign compliance obligations could arise.

The consultation process will remain open until July 14, 2026, and the amendments are expected to come into effect following the Federal Council’s final decision on the revised ordinance.

Source:

• Release
• Consultation

3. Peru Issues Updated Guidance on Mutual Agreement Procedure (MAP) under Tax Treaties

Peru’s tax administration, SUNAT, has issued Version 2.0 of the Guidance on the Mutual Agreement Procedure (MAP) applicable under Peru’s Double Taxation Avoidance Agreements (DTAs). The guidance explains the legal framework, scope, procedural requirements, timelines, and implementation aspects of MAP cases in Peru.

The guidance clarifies that taxpayers may invoke MAP where actions of one or both contracting states result in taxation not in accordance with the relevant DTA. It also outlines unilateral and bilateral MAP mechanisms, the role of the Peruvian Competent Authority, and matters eligible for MAP, including transfer pricing adjustments, permanent establishment disputes, withholding tax issues, and residence conflicts.

Further, the guidance specifies the documentation and timelines for filing MAP requests, interaction between MAP and domestic remedies, grounds for non-acceptance, and implementation of MAP decisions or agreements. It also provides for bilateral advance pricing agreements (BAPAs) and rollback provisions in transfer pricing cases.

The revised guidance aims to improve clarity and facilitate effective dispute resolution under Peru’s tax treaty network.

Source: MAP Guidance

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