FAQFAQ for the Taiwan Business Tax 22
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The Taiwan business person entrusts a courier company to export express consignments, how do they apply to the zero tax rate? |
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The business person that entrusts a courier company that registered at the custom to export express consignments according to the Regulations Governing Customs Clearance Procedures for Express Consignments, the goods exported with a FOB value that less than TWD 50,000, the business person could present the receipt with the name of the sender, Uniform Invoice, name of goods, number of goods, FOB value and the declaration form for express consignments, the information of the waybill invoice, etc. as the supporting documents, to file the business tax return that applicable to zero tax rate.
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The period of suspension of the Taiwan business person is about to expire if the business person would like to apply for an extension, do they require to resume of business before applying for an extension? |
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The Taiwan business person that approved to suspend their business, when the period of the suspension is about to expire, the business person could apply for an extension before the end of the expiration day, the business person does not need to resume of the business.
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The Taiwan business person (Trustee) overpaid the business tax due to the property entrusted, could they apply for a tax refund? |
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The business person (Trustee) overpaid the business tax due to the property entrusted, after the trustee of the trust act disposes of the trust properties, they could apply for a tax refund according to the range of the output tax that the trustee has disposed of, in accordance to the Paragraph No.2, Articles No.39 of the Value-added and Non-value-added Business Tax Act.
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The business person using his own housing area to operate a breakfast shop, the business person does not apply for a business license and does not hire any employee, should they apply for a tax registration? |
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According to Paragraph No.1 and No.2, Articles No.3 of the Value-added and Non-value-added Business Tax Act, the transfer of ownership of goods to others for a consideration deemed as sales of goods. The supply of services to others or the provision of goods for the use of others deemed as sales of services. Regarding the issue that “the business person using their housing area to operate the breakfast shop, noodles stall, selling snacks, drinks, etc., the business person doesn’t have a license, without hiring any employee, the income is less and the sales amount hasn’t reached the threshold”, these behaviors belongs to the behavior of sales of goods, it does not comply with the regulations of the official document No. 781143103 issued by Ministry of Finance on 6 April 1989, which stated about the goods does not sell directly to clients, and the business nature isn’t the range of the handicraft. Therefore, the business person should handle tax registration.
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The Taiwan management committee of the building that received the rental income of the advertising wall, roof, balcony, should they apply for a tax registration? |
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According to the Articles No.1 and No.8 of the Value-added and Non-value-added Business Tax Act (Referred to herein as “Business Tax Act”), besides the goods or services that are exempted from the business tax, the sale of goods or services within Taiwan shall levy for the Taiwan business tax. According to Articles No.2 and Paragraph 2 of Articles No.6 of the Business Tax Act, a nonprofit-seeking enterprise, institution, organization, or association which sells goods or services, will deem as the taxpayer of the business tax. According to the regulations of the official document No. 760074994 issued by the Ministry of Finance on 7 August 1987, the management committee, based on the view of the mutual assistance, the management committee is exempt of tax registration if they are without business behavior. The management fee charged by the management committee is exempt from business tax. The parking lots, if it is charges by times or period, or provision of parking, renting the parking lots for a certain period and operating externally, it recognizes as the range of sales of the services according to the Articles No.1 and Paragraph No.2 of Articles No.3 of the Business Tax Act, they should handle the tax registration and levy the business tax in accordance to the Business Tax Act. For the rental agreement that signed between the management committee and the tenant, the rental income of the advertising wall, roof, balcony, they should recognize as the fund of the management committee, it belongs to the income from sales of services of the management committee. Therefore, the management committee should handle tax registration and levy the business tax in accordance with the business tax act. |
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