As of 2026/08/06, the Taiwan Tax Bureau issued detailed withholding tax regulations governing interest payments made by digital lending platforms to borrowers. The guidance specifies a standard withholding rate of 10% on such interest income, and outlines reporting obligations for platform operators, including quarterly filing of Form XHT and mandatory electronic submission via the Bureau’s online portal. The rule also introduces a grace period of 30 days for compliance, after which penalties of up to 5% of the unpaid tax may be imposed. Additionally, the Bureau clarified that cross‑border interest payments to foreign lenders are subject to the same withholding obligations, and that withholding agents must retain supporting documentation for at least five years. The regulation becomes effective on the date of publication, and affected entities are advised to review their payment systems and update withholding procedures accordingly.
Key Takeaways
- Effective Date: 2026/08/06
- Withholding Rate: 10% on interest payments
- Compliance Timeline: 30‑day grace period, penalties up to 5%
Source: Read Original Announcement