FAQEducation, Culture, Public Welfare Entity or Charity Tax Return Procedure
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When should Taiwan educational, cultural, public welfare, and charitable organizations or organizations file annual settlement declarations? |
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Educational, cultural, public welfare, charitable organizations or organizations and their operating organizations should complete settlement declarations from May 1 to May 31 each year. Those who do not meet the tax exemption requirements should still be taxed according to law.
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What penalties will be imposed on Taiwan educational, cultural, public welfare, and charitable organizations or organizations that fail to complete the settlement declaration? |
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Except for educational, cultural, public welfare, and charitable organizations or organizations that are exempt from income tax settlement and declaration, if they fail to file settlement declarations during the annual income tax declaration period, the tax collection authority will fill in the form in accordance with Article 79, Paragraph 1 of the Income Tax Law. The delayed declaration notice informs the agency and organization to make a supplementary report within a time limit; if the taxation agency still fails to do so within a certain time limit, the tax collection agency will guide these agencies and organizations to make a supplementary settlement report within a certain period of time. For those who still fail to complete the declaration of the organization and group settlement after the counseling, the tax collection agency shall verify the remaining balance based on the information obtained or the income nature of the industry and apply the same industry profit standard, and it shall be regarded as not conforming to the "Education, Culture, Public Welfare and Charitable Organizations or Organizations". The tax-exemption requirements of the "Applicable Standards for Exemption from Income Tax" shall be taxed in accordance with Article 71-1, Paragraph 3 of the Income Tax Act. |
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How is the income from reinvestment of education, culture, public welfare, charitable organizations or groups taxed in Taiwan? |
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When calculating the expenditure ratio of Taiwan education, culture, public welfare, charitable organizations or organizations in accordance with the "Applicable Standards for the Exemption of Income Tax for Education, Culture, Philanthropy and Charitable Organizations or Organizations", Article 2, Item 1, Subparagraph 8, the dividends they receive Should net or net surplus be included in the calculation? |
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The net amount of dividends or net surplus distributed to educational, cultural, public welfare, charitable organizations or organizations is the income of the organizations and organizations, and should be used together with other income for the expenditure of activities related to the purpose of their creation, and calculated whether the expenditure ratio meets the 60% stipulated in Article 2, Item 1, Subparagraph 8 of the "Education and Culture Public Welfare Charitable Organizations or Groups Applicable Standards for Income Tax Exemption". |
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Under what circumstances can Taiwanese profit-seeking enterprises apply for asset revaluation? |
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For the assets of a profit-seeking enterprise, if the price index of the current year has risen by more than 25% compared with the year in which the asset was acquired or the previous year when the asset revaluation was conducted according to the law or decree, it may apply to the taxation authority for asset revaluation. Appraisal, for-profit enterprises to handle asset revaluation, should fill in the asset revaluation application form within the second month and one month after the end of the fiscal year, stating the date of establishment of the profit-seeking enterprise, the start and end dates of the fiscal year, and whether the asset has been processed. For revaluation, apply to the taxation management agency for asset revaluation, and fill in the following three forms to the taxation management agency within 60 days from the date of receipt of the approval notice from the taxation management agency. Revaluation declaration: (1) Assets revaluation declaration (2) Revaluation balance sheet and its detailed table (3) Comparison of the balance sheet before and after the revaluation. If the declaration is not made within the 60-day period, the profit-making enterprise can extend it by itself for 30 days without having to apply for approval in advance. |
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