[World Tax News] Taiwan’s MoF Clarifies How to Compute Residency Days for Foreign Taxpayers and More

Editorial Team – [2026] 186 taxmann.com 867 (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’s Ministry of Finance Clarifies How to Compute Residency Days for Foreign taxpayers

The Beidou Office of the Central Area National Taxation Bureau, Ministry of Finance, reminds foreign taxpayers that the number of days of residence in Taiwan shall be determined on the basis of the entry and exit stamps affixed in their passports or the “Certificate of Entry and Exit Dates” issued by the National Immigration Agency, Ministry of the Interior.

The computation shall be made in accordance with the prescribed rule that the date of arrival (commencement date) shall be excluded, whereas the date of departure (termination date) shall be included. Where an individual enters and exits Taiwan multiple times during the same taxable year, the number of days of stay for each period shall be aggregated.

For instance, Mr A entered Taiwan on January 10, 2025 (Tax Year 2025 / ROC Year 114), and departed on March 20, 2025. Accordingly, the period of stay in Taiwan for such visit amounted to 69 days, computed by excluding the date of arrival and including the date of departure.

Subsequently, Mr A re-entered Taiwan on May 1, 2025, and departed on June 30, 2025. The duration of stay for this second visit amounted to 60 days, computed on the same basis, i.e., excluding the date of arrival and including the date of departure.

Therefore, since Mr A entered and exited Taiwan twice during the same taxable year, the aggregate number of days stayed in Taiwan during the year amounted to 129 days.

For any further clarification, taxpayers may contact the toll-free service number 0800-000321 during office hours, where assistance will be provided by the concerned staff.

Contact Person – Ms Sung, Individual Income Tax Section, Beidou Office
Telephone – (04) 8871204 ext. 211

Source – Notice

2. Pakistan FCC Strikes Down Tax on Deemed Income from Immovable Property

The Federal Constitutional Court (FCC) has declared Section 7E of the Income Tax Ordinance, 2001, unconstitutional and void ab initio, holding that the provision unlawfully permitted the Federal Board of Revenue (FBR) to tax “deemed income” from immovable property even where no actual income had accrued or been received.

Introduced through the Finance Act, 2022, for Tax Year 2023, Section 7E imposed tax on immovable properties exceeding Rs. 25 million by deeming income at 5% of the FBR-determined fair market value and taxing the same at 20%, effectively resulting in a 1% annual tax on the capital value of non-rented or undeveloped properties, subject to specified exemptions.

The FCC further declared all actions, proceedings and notices initiated by the FBR under Section 7E to be without lawful authority and set aside the same. The Court allowed taxpayers’ petitions against the judgements of the Sindh High Court (SHC) and Lahore High Court (LHC), while dismissing the petitions filed by the FBR and Commissioner Inland Revenue (CIR) against the decisions of the Peshawar High Court (PHC) and Balochistan High Court (BHC).

The provision was challenged on the ground that it imposed a tax on artificial or unrealised income and, in substance, amounted to a property tax disguised as income tax, thereby exceeding Parliament’s legislative competence under Article 77, read with Entry 47 of the Federal Legislative List, and violating Article 25 of the Constitution.

Source – Dawn.com

Click Here To Read The Full Article