Taiwan to Subject Digital Sales by Foreign Companies to Corporate Tax

Taiwan's Ministry of Finance is reportedly planning to subject payments for digital services to corporate tax withholding when made to foreign companies without a fixed place of business within the territory of Taiwan. Affected payments would include those for streaming content, games, online advertisements, and other digital services, while payments for foreign-produced products or downloads would not be subject to tax.

The withholding would be based on a presumed profit margin of 30%, whic…