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Taiwan Corporate Tax: Expanded Audit by Reviewing Declaration
Taiwan company has three methods to file corporate income tax (profile-seeking enterprise income tax): Expanded audit by reviewing declaration on tax, audit by reviewing account books and accountant tax compliance certification. In general, all companies in Taiwan are required to adopt the “Audit by Reviewing Account Books” method for accurate taxation.
Tax Reporting for Corporate Gift-Giving in Taiwan
The Mid-Autumn Festival is one of the most important Chinese festivals, and many companies take the opportunity to present gifts to their clients or employees. In Taiwan, if a company distributes its own inventory as gifts, this should be regarded as the sale of goods, and an invoice must be issued based on the sale price, with business tax declared and paid accordingly.
Determining the Withholding Tax Rate for Company Employee Salary in Taiwan
To determine if an employee is a tax resident in Taiwan, various factors such as the number of days they reside in Taiwan, whether they have a residence, household registration, and whether they work or do business in Taiwan should be considered. Generally, this can be categorized into three scenarios.
Spousal Estate and Gift Tax in Taiwan
Mr. Li has had a knack for financial management since his youth. During several economic recessions, he took the opportunity to enter the stock market and continued to hold his investments long-term after marriage. As he approached retirement, he had accumulated 100 shares of Hon Hai (Foxconn) and 100 shares of Taiwan Semiconductor Manufacturing Company (TSMC). As he entered his senior years, he began to think about estate planning.
Taiwan House and Land Transactions Income Tax
To curb the phenomenon of flipping properties in Taiwan, the new Income Tax Act is revised the taxation regulations toward to selling estates (abbreviated as “House and Land Transactions Income Tax” hereafter), which was implemented on January 1st, 2016. The taxation brackets are as varied as the holding period, the longer you hold, the lower the tax rate is.
Taiwan Company Representatives Tax Regulations
No matter foreigners or Taiwanese to be the responsible person of Taiwan company, the tax regulations will be varied as different as the country of tax residents.Residency and holding the household registration in Taiwan within 1 to 31 days (with Taiwan labour insurance, health insurance, national pension, or spouse and children in Taiwan).
Information for Personal Income Tax Filling in Taiwan 2024
The period for personal tax filing in Taiwan is marked by May 2024. In accordance with the amendments to the Civil Code of Taiwan, as of January 1, 2023, individuals who have reached the age of 18 are legally considered adults. This change affects the eligibility for claiming dependents for tax exemptions.
The Benefits of Taiwanese Employees Voluntarily Contributing to Their Pension Fund
When Taiwan companies declare employees’ annual salary income from the previous year, including various income and exemption certificates, if an employee has participated in voluntary pension contributions during that year, the amount of the contribution should be deducted in full of the total salary income to avoid overpaying taxes.
Taiwan Company Real Estate Execution Tax Return Period
Taiwan companies don’t have to pay taxes if the company have a great deficit within the first few years. Upon making profits, the losses incurred from the past few years are not possible to recover the offset, which is different than other countries. For tax return by the due date, from the position of Taiwan Taxation Bureau, the due date is included the tax return and payment.
Taiwan Employee Unemployment Income
In regards to if the unemployment income received by Taiwan employees should be charged with taxes or not, first of all, we have to understand whether such income is “One-off Payment” or “Instalment”.The unemployment income is counted as separation pay, including retirement pension, severance pay, separation pay, lifetime pension, non-insured old-age pension and so on, which are privileged to benefit the tax exemption