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The Impact of Taiwan Civil Code New Amendment on Taxation
According to Taiwan Civil Code, the age of majority has been lowered to 18 years old. The Taiwan Executive Yuen also amended the regulations of tax allowance in the Income Tax Act and the Estate and Gift Tax Act accordingly.In terms of income tax, what is affected is the dependent support regulations. According to the previous version, the taxpayer’s children who are under 20 years old or over 20 years old but are still in school
Provisions on Taiwan Branch Sharing Headquarter Expenses
According to the “Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax” Article 70, when a foreign company Taiwan branch is filling tax, it can apportion the management expenses of its headquarter. However, there are two constrains which have to be aware of: 1.Firstly, the apportionment party is designated to the headquarter or regional headquarter, etc., and limited to non-operating departments only;
Documents Required for Taiwan Companies Reporting Overseas Investment Loss
According to the Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax Article 99 Subparagraph 2 “Investment loss should provide prove on capital reduction to cover losses, merger and acquisition, bankruptcy or liquidation. However, if the invested business located in a foreign country and did not participate in any actual operating activities,
Taiwan Company should Declares Income Even if They do not Generate Taxable Income
Many companies thought that underreporting the income of the company will not have a penalty as they do not generate taxable income. Actually, according to the regulation of Income Tax Act, where a profit-seeking enterprise, due to tax exemption provided under the incentive statute or because of the business deficit, shall not have a taxable income even though the amount of income omitted or under-reported is added to it
Regulation of Article No. 25 of Taiwan Income Tax Act
The foreign companies that providing the technical services or construction contract to the client in Taiwan, the foreign companies often request by the client in Taiwan to pay for a withholding tax of 20% according to the law in Taiwan, is there any ways to lower the tax burden? Yes, the foreign companies could apply for tax reduction in accordance with the Article No. 25 of the Taiwan Income Tax Act.
Tax Saving Option for the Estate Tax in Taiwan: “Generation-skipping Transfer Before Death” or “Children Abandon of Inheritance”
In this modern age, people live longer, a grandfather would like to distribute the property, his children are aged, and grandchildren are grown-up. When considerate of the tax saving of the property, between the “Generation-skipping Transfer Before Death” or “Children Abandon of Inheritance”, which way will be better?
Guide to Accounting and Auditing Requirements in Taiwan
Business entities must follow the accrual basis of accounting in performing recognition, measurement and reporting for accounting purposes. All income realised and expenses incurred or attributable to the current period should be recognised as income or expenses in the current period regardless of when the income is received or expenses are paid.
Guide to Taiwan Land Value Tax
The taxpayer must declare the value of his/her land with reference to the posted value announced publicly by the Land Value Assessment Commission. The declared land value should be 80% to 120% of the posted value. If the land owner has not declared the value of his/her land during the announcement period, the value would be 80% of the posted value.
Guide to Taiwan Anti-Tax Avoidance Measures
In view of many anti-tax avoidance measures have already been placed in the United States, EU countries and many other countries, Taiwan has set anti-tax avoidance measures such as transfer pricing and anti-thin-capitalization in accordance with international regulations. At the same time, the Income Tax Act regarding the addition of “controlled foreign companies” and “actual management offices” has also been passed
Comparison of Major Taxes in Taiwan and Mainland China
Taiwan Profit-seeking Enterprise Income Tax: Basic tax rate is 20%;The tax rate is 12% after the implementation of Income Basic Tax Act (thereafter [Alternative Minimum Tax]).For a profit-seeking enterprise with independent legal personality, while the current year’s surplus is not distributed in the following year, an additional 5% profit-seeking enterprise income tax is required;Loss carrying forward period is 10 years