Q：
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Can the foreign tax and mainland tax paid by Taiwan's profit-seeking enterprises be deducted from the provisional tax?
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A：
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From 2014 onwards, for profit-seeking enterprises whose head office is located in Taiwan, the provisional tax is calculated based on the profit-seeking enterprise income of the first 6 months of the current year according to Article 67, Paragraph 3 of the Income Tax Act. Business income is income from outside Taiwan, and the income tax paid in accordance with the tax law of the country where the income is sourced before the statutory deadline for filing provisional tax returns for the current year may be deducted from the provisionally paid tax. The amount of deduction shall not exceed the additional provisional tax amount calculated according to the domestic applicable tax rate due to the addition of foreign income.
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The profit-seeking enterprise's probable income according to the regulations is derived from the mainland area, or the investment income of the company or enterprise in the third area reported is derived from the investment income distributed by reinvesting in the mainland area company or enterprise, and it is regarded as the mainland area. For source income, the income tax paid in the Mainland Area and the third area may be deducted from the provisionally paid tax within the limit in accordance with the preceding point.
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When taxpayers report and deduct the income tax paid in the source country, the mainland area and the third area in accordance with the provisions of the preceding two points, they shall be implemented in accordance with Article 3, paragraph 2 of the Income Tax Act and the Regulations on the Relations between the People of the Taiwan Area and the Mainland Area. Items 4 and 5 of Article 21 of the detailed rules stipulate that the tax payment certificate issued by the tax authority of the country or region where the income originated, and after obtaining the inspection (authentication) certificate of the designated or authorized institution, together with the declaration of provisional tax and the Relevant supporting documents shall be reported to the collection authority.
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Q：
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According to the tax law in Taiwan, which for-profit enterprises or organizations can be exempted from the provisional declaration?
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A：
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The following profit-seeking enterprises or organizations can be exempted from the temporary payment declaration:
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For profit-seeking enterprises, 1/2 of the income tax payable of profit-seeking enterprises according to the previous year's settlement and declaration is the provisional tax amount, and the provisional tax amount is not deducted from the investment tax credit, administrative relief tax retained and withholding tax. After paying the provisional tax to the state treasury, the declaration is exempted.
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For profit-seeking enterprises whose provisional tax amount is less than NT$2,000, calculated based on 1/2 of the profit-making enterprise income tax payable in the previous year's settlement and declaration, the provisional tax payment will be exempted from 2009.
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For a profit-seeking enterprise without a fixed place of business within the territory of Taiwan, the profit-seeking enterprise income tax shall be withheld by the business agent or by the payer at the time of payment in accordance with the provisions of Article 98-1 of the Income Tax Law.
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Sole proprietorship, partnership organization, and approved small-scale profit-seeking enterprises.
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Educational, cultural, public welfare, charitable organizations or groups and their affiliated operating organizations, consumer cooperatives that do not operate externally, and public enterprises that meet the tax exemption regulations.
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Those who are exempted from income tax for profit-seeking enterprises in accordance with the Income Tax Act or other relevant laws.
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Those who have no taxable amount of income tax for profit-seeking enterprises in the previous year's settlement and declaration, and those who are newly established in this year.
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For profit-seeking enterprises that are dissolved, abolished, merged or transferred before the expiration of the temporary payment reporting period, they should file the current period final accounts declaration in accordance with Article 75 of the Income Tax Act.
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Other profit-seeking enterprises approved by the Ministry of Finance.
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Q：
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If Taiwanese profit-seeking enterprises fail to pay the provisional tax in accordance with the time limit, how will the tax collection agency handle them? What kind of losses will the taxpayer suffer?
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A：
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If a profit-seeking enterprise fails to pay the provisional tax within the specified period but has made a supplementary report and paid the provisional tax in accordance with the provisions of Article 67, Paragraph 1 of the Income Tax Act before October 31, it should start from October 1. Until the day when the provisional tax is paid, the provisional tax paid shall be levied together with the fixed interest rate of the 1-year fixed deposit of the postal savings fund stipulated in Article 123 of the same law, plus interest on a daily basis.
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Q：
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What penalties will a Taiwan profit-seeking enterprise income tax taxpayer receive for failing to pay the tax within the prescribed time limit?
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If the taxpayer pays the tax in excess of the time limit, a late payment fee of 1% of the overdue amount will be levied every two days. If the taxpayer fails to pay the tax within 30 days, it will be transferred to the tax collection agency for compulsory execution. If it is a profit-seeking enterprise, it may stop its business until the date when the taxpayer pays the tax.
The tax payable in the preceding paragraph shall be collected from the day following the expiration of the late payment period to the date of payment by the taxpayer, at the deposit interest rate stipulated in Article 123, plus interest on a daily basis and collected together.
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Q：
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When Taiwan's tax collection agency investigates the income tax of profit-seeking enterprises, what punishment will be imposed on profit-seeking enterprises if they fail to present the account books for verification?
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A：
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When the taxation authority conducts an investigation, the taxpayer shall, after receiving the notification, present all account books and documents related to the proof of income for future reference within the time limit of the notification. (The same below) A fine of not less than NTD3,000 but not more than NTD30,000 will be imposed. If the notification is not made within the prescribed time limit, a fine of not more than NTD1,500 will be imposed. , to determine the amount of income, if part of it fails to be presented, the amount of income of that part will be determined according to the information obtained or the profit standard of the same industry.
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