2023-09-12Individual Online Sellers Should Apply for Taxation Registration
|
Threshold |
Business Tax |
Income Tax |
Non Profit-making Purpose |
Individuals selling clothes and furniture used daily by the family |
No need for taxation registration |
Tax-free |
Selling goods online occasionally (e.g. selling self-made handicrafts online occasionally) |
No need for taxation registration |
Considered as temporary trade income which shall be calculated at a net profit margin of 6% and included in the individual income tax. |
|
Profit-making Purpose |
Monthly sales of goods below NTD 80,000 (Monthly sales of labour below NTD 40,000) |
No need for taxation registration |
Calculated with Individual Income Tax. With accounting record:Yearly total income deducting related cost is considered as income amount. Without accounting record: :income calculated with Audit by Reviewing Declaration on Tax Returns Expanding to the Cases Qualified for the Standards Issued by the MOF on yearly total income. |
Monthly sales of goods between NTD 80,000 – NTD 200,000 (Monthly sales of labour between NTD 40,000 – NTD 200,000) |
Registration:Taxation registration according to the individuals’ household Tax Rate: 1% Declaration:The National Taxation Bureau will issue tax bill for it. |
Calculated with Individual Income Tax. With accounting record:Yearly total income deducting related cost is considered as income amount. Without accounting record: :income calculated with Audit by Reviewing Declaration on Tax Returns Expanding to the Cases Qualified for the Standards Issued by the MOF on yearly total income. |
|
Monthly sales of goods or labour over NTD 200,000 |
Registration:Taxation registration according to the individuals’ household Tax Rate: 5%; issue unified receipt according to law Declaration:declare for business tax every 2 months |
The declaration of income tax may varies from the business model. Company: Corporate Tax 20%. Sole/ Partnership: calculated with individual income tax of pre-tax profit and loss. |