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Tax Regulations on Holding a Year-end Party in Taiwan
In accordance with “Business Tax Act”, the prize which is purchased to reward the employees is not allowed to be listed as input tax to offset the output tax. A majority of Taiwan companies usually provide the employees with dinning party, lucky draws the welfare of these kinds, but the nature of these welfares is affiliated with rewarding to the employees, which means the input tax cannot be offset.
Transactions of Artworks in Taiwan
From 21/05/2021, in order to promote the development of arts and cultures industry, the income from transactions of individual artworks approved by Taiwan Ministry of Culture is allowed to proceed separate taxation for deduction.First of all, the company shall submit an application to Ministry of Culture before holding the event by one month.
Qualification for offsetting the Paid Foreign Business Tax in Taiwan
It is a very common phenomenon that a majority of Taiwan’s businessmen choose to invest in cross-country enterprises. However, according to the article 3rd in Income Tax Act in Taiwan, for the location of head office of foreign enterprises within the territory of Taiwan, such profit-seeking enterprise in Taiwan shall comply with the laws to declare the profit-seeking income tax. The domestic and oversea income shall be declared jointly.
Change of Responsible Person and Transfer of Goods for Trade Name
Given to the subject of supervisory changed, the deregistration of tax ID number is required upon the change of the responsible person for trade name in sole proprietorship and the new tax ID number shall be registered with the name of new responsible person.
Amendment of Regulations Application to Taxes on Income
A series of revision promulgated by Ministry of Finance in Taiwan recently, which were a significant revision since the initial promulgation in 2021. One of the must-see points in this revision is the adoption of “Principle Purpose of Test” under the global attention. Generally speaking, the Taiwan government will inspect if the enterprises are going to evade
The Important Notice for Tax Reduction in Taiwan (For whom paid tax in China)
For Taiwanese who have any source of income in China, these citizens should declare the individual income tax in May annually with the tax incurred in China jointly. Therefore, If the tax in China has already declared and paid, the tax payable in Taiwan can be deducted from to avoid the event of dual imposition of tax occurring.
CFC Regulation in Taiwan - Individual
The purpose of Controlled Foreign Company (Hereafter referred to as CFC) regulation is to avoid profit-seeking enterprise, which established its company in low-tax rate burden country (Profit-seeking enterprises income tax rate less than 14%, like BVI; or only pay the domestic income tax, like Hong Kong or Singapore)without any practical business activity via CFC, evading the tax payable with the practical control
Attention to the List Price for Taxable Goods or Services in Taiwan
Business models and styles have been more diversified nowadays. No matter the business is run online or in physical stores, the list price of taxable goods or services should include business tax in it. However, some online stores claim that they do not include business tax in the list price and require an additional 5% business tax charge to their clients, which lead to consumption disputes.
Attention to the Prescription on the Outstanding Accounts Payable for Taiwan Companies
It is inevitable that accounts payable happens in businesses. The Taiwan National Taxation Bureau reminds that when companies declare for corporate income tax, it is important to pay attention to the prescription on various kinds of outstanding accounts payable, which can vary from 2 – 15 years. Furthermore, if a payment is unsettled upon prescription, it must be changed to other income in accounting in that current year.
Individual Online Sellers Should Apply for Taxation Registration
The threshold of individual online sellers who run online businesses for profit-making purpose, was based on the total “average” sales in the last six months. However, online shop transactions have become more frequent in recent years, the Taiwan Ministry of Finance issued an explanatory order at the end of January 2020, stating that the business tax threshold of online seller has been changed