Taiwan Approves Tax Reform Increasing Corporate Tax Rate and Abolishing Imputation Tax System

On 18 January 2018, Taiwan's Legislative Yuan approved amendments to the Income Tax Act that includes changes for both corporate and individual taxpayers. Key changes are as follows

• The corporate tax rate is increased from 17% to 20% in 2018, with a transition for SMEs with taxable income of up to TWD 500,000: 18% in 2018, 19% in 2019, and 20% from 2020;
• The imputation tax system for dividends is abolished, with the credit account no longer required;
• The retained earnings tax is reduced from…