Q:
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Should the individual subject to tax if they join the business of Multilevel Marketing (MLM) in Taiwan?
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A:
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The individual joins the Multilevel Marketing (MLM) business, since they are the direct purchase of goods or purchases goods and accumulate points (or amount) until certain standard, and the incentive bonus earned or various subsidies received from the business entity. The “bonuses” mentioned belongs to the Enforcement Rules of Value-added and Non-value-added Business Tax Act Article 23, the business person of MLM shall issue a proof of sales return or purchase return. The MLM individual shall declare for Other Income Withholding and Non-withholding Tax Statement. If the bonus paid by the business entity and had declared for the profit-seeking enterprise income tax, it must not repeatedly declare for the expenditure.
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Q:
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After the abolish of Statute for Salt Administration, salt is no longer a product of monopoly. Should it subject to business tax?
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A:
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The Statute for Salt Administration officially abolished by the Office of the president of Taiwan on 20 January 1993 with the official documents number of 093000010091. The production and the distribution of salt products are no longer restricted by the Statute of Salt Administration, the price is returned to the market mechanism, and it is no longer a product of monopoly. Therefore, the salt shall subject to business tax.
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Q:
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Is the rental income from renting property in Taiwan Hospital subject to business tax?
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A:
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The rental income of the hospital for renting the property, shall levy for business tax in accordance with the Income Tax Act. According to Article 88 of the Income Tax Act, the tenant will not need to pay for the withholding tax of the rent paid.
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Q:
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An individual renting out their property, collecting rent, shall they subject to business tax?
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A:
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The individual renting out their property or lease the property and rent to a third party. Since 1 January 2009, under one of the following circumstances, the individual should handle the tax registration and pay for business tax.
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Having a fixed business place (with a physical business place or have a website)
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Having the business license (regardless of whether the registration has been done in accordance with the law)
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Employ employees to handle housing rental matters.
The individual that does not match with the above condition, shall in accordance with Article 14 of the Income Tax Law and pay for the individual income tax.
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Q:
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Taiwan business person trade in their equipment to subscribes to the new shares issued by other companies, do it count as sales of goods?
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A:
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The business person trade in their equipment to subscribes to the new shares issued by other companies, it counted as sales of goods. Therefore, according to the Article 32 Part 1 of the Value-added and Non-value-added Business Tax Act and the Article 18 of the Enforcement Rules of Value-added and Non-value-added Business Tax Act, when the business person uses goods or services in a trade for the goods or services of others, the sales amount shall be the higher of the prevailing prices for the goods or services traded-out and traded-in. At the same time, the business person shall issue a uniform invoice to the company being invested.
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