FAQFinal accounts declaration and liquidation declaration procedures
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For Taiwanese profit-seeking enterprises to handle final accounts, what are the regulations on extension of declaration? |
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For a profit-seeking enterprise due to its dissolution, abolition, merger or transfer, the profit-seeking enterprise income tax return for the current period as of the date of dissolution, abolition, merger or transfer shall be filed in accordance with Article 75 of the Income Tax Law. Because the Income Tax Act has deleted the requirement to extend the filing period and abolished the application of a profit-seeking enterprise that changes the fiscal year or handles final accounts due to special circumstances, it may be reported to the tax collection authority for approval to extend the filing period. Therefore, such cases cannot apply for extension of the filing period.
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For profit-seeking enterprises in Taiwan, before the start of the annual settlement and declaration period, the settlement and liquidation declarations are processed, and the settlement declaration of the previous year is processed at the same time. How to determine the start date of the settlement declaration case review period? |
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When a profit-seeking enterprise handles the settlement and liquidation declaration before the annual income tax settlement and declaration period, it also declares in advance the settlement cases that have not yet expired by the statutory declaration period in the previous year. The tax collection authority accepts the declaration, but the settlement has not been changed. The reporting period shall be made according to Article 71, Paragraph 1 of the Income Tax Act for the reporting period for income tax settlement (May 1 to May 31 for the calendar year), so the legal reporting date is still the reporting date. |
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What is Taiwan's educational, cultural, public welfare, and charitable organizations or organizations? |
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The educational, cultural, public welfare, charitable organizations or organizations refer to organizations that conform to the general provisions of the Civil Law “public interest associations” and “foundation groups,” or those that have been registered or established with the competent authority in accordance with other related laws and regulations. |
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Can the funds of educational, cultural, public welfare, and charitable organizations or organizations in Taiwan be invested in or lent to general for-profit enterprises? |
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This question is explained in 2 points:
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Does Taiwan's educational, cultural, public welfare, and charitable organizations or organizations fail to report income or expenses, does it affect tax exemption? |
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All revenue and expenditure of the agency or organization should have legal documents and complete accounting records. If the tax collection agency fails to present legal documents for future reference, or if there is any omission of income and expenditure, it will be contacted. If the tax-exemption regulations are inconsistent, in addition to levying the current year’s income tax according to the law, the relevant evasion should also be punished according to law; however, the annual settlement and declaration of financial groups and other agencies and organizations should not exceed NT$100,000 or the proportion of short-term and under-reported income should not exceed NT$100,000. If the proportion of annual income does not exceed 10%, and the tax evasion and donation are not by fraud or other improper methods, it may be regarded as a short omission, and the circumstances of the omission are minor, and meet the "Applicable Standards for Education, Culture, Public Welfare and Charitable Organizations or Organizations for Income Tax Exemption" No. 2 Article 1, paragraph 9. As for those who have not been withheld according to law, they shall be punished in accordance with the provisions of Article 114 of the Income Tax Law after being notified by the tax collection authority to make additional withholding and make a withholding declaration. Group Income Tax Exemption Applicable Standards". Calculation and liquidation declaration. If the person in charge or partner is changed, but the main body of the profit-making enterprise has not been dissolved, abolished or transferred, the settlement and liquidation declaration can be exempted. |
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