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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
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.