Q：
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What the things shall be aware of in the declaration of storage charges for profit-seeking enterprises in Taiwan?
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A：
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The things shall be aware of in the declaration of storage charges as following:
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1.
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The storage charges incurred before the arrival of purchased goods or materials. The related expenses for purchase of goods and materials shall be taken into the original costs to calculate.
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2.
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The storage charges incurred across a year, which shall be attributed to the expenses in the year after next year and recognized as “Prepaid Expense”.
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3.
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The loss of storage charges shall be fully responsible by the responsible person of warehouse pursuant to the contract and is not allowed to be allocated as loss, but the person granted the rights to ignore the remuneration through litigious verdict is not limited.
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4.
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The original proof of storage charges is a uniform invoice with title.
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Q：
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What things shall be aware be in the declaration of fuel expenses for profit-seeking enterprises in Taiwan?
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A：
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The thing shall be aware of in the declaration of fuel expenses as following:
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1.
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The fuel expenses incurred from producing goods shall be listed into original costs.
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2.
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The fuel expenses incurred from making meals for employees shall be listed into board expenses, instead of fuel expense.
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3.
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The unexhausted amount of fuels from the purchased fuels in bulk at the end of year shall be listed as material storage.
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4.
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The original proof to recognize fuel expense as following:
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(1)
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The uniform invoice or receipt from the profit-seeking enterprises which is approved to free from issuing the uniform invoice.
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(2)
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The uniform invoice with the tax ID number of profit-seeking enterprise from fuels purchased from gas stations.
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(3)
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In the condition of a profit-seeking enterprise and another one shares the same furnace; such proof of fuel expense shall be presented by the profit-seeking enterprise who holds the receipt.
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Q：
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What is the requirement to offset the bad debt in the declaration for profit-seeking enterprises in Taiwan?
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A：
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The question can be divided into 2 sides to specify:
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1.
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The preparative amount to offset the bad dept which is not allowed to exceed the amount of trade or amount receivables as the receipt in 1%. For financial industries, the amount to list shall be based on the balance of indebtedness.
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2.
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In the circumstance of profit-seeking enterprise whose percentage of bad debt exceeds the aforementioned percentage, such enterprise shall share the percentage of bad debt in previous 3 years to list by laws.
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Q：
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What kind of documents shall be submitted for the loss of bad debt incurred from reconciliation, bankruptcy, or verdict by courts?
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A：
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The question can be divided into 3 sides to specify:
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1.
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The loss of bad debt incurred from the reconciliation through courts, including the reconciliation and litigious procedure before bankruptcy shall be presented the reconciliation notes or court ruling; the reconciliation through chamber of commerce or labor union shall presented the reconciliation notes. Besides, the reconciliation through mediation committee in each district shall be presented the certificate of reconciliation issued by the mediation committee and verified by the courts.
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2.
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The loss of bad debt from the announcement of bankruptcy or reorganization of the debtor shall be presented the court ruling.
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3.
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The loss of bad debt incurred from the mandatory execution by the court which contributes to the incapability liquidate the debt shall be presented the certificate of indebtedness issued by the court to be recognized as the loss of bad debt at that year (For those who hold the certificate of indebtedness issued by courts, the retrieved indebtedness shall be recognized as income upon the year of retrieval.)
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Q：
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How to depreciate the purchased passenger car in the declaration for profit-seeking enterprises in Taiwan?
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A：
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The question can be divided into 4 sides to specify:
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1.
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The depreciation of purchased passenger car shall be evaluated by the durability in the unit of year, the maximum amount of depreciation shall be under NTD1,500,000; For the cars purchased from 01/01/2004, the maximum amount of depreciation becomes under NTD2,500,000. The exceeding amount is not allowed to be recognized.
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2.
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From 01/01/1999, the maximum amount of depreciation shall be under NTD3,500,000 for the purchased passenger cars of the profit-seeking enterprises of rental passenger car. Reversely, for passenger cars purchased from 01/01/2004, the maximum amount of depreciation becomes under NTD5,000,000. The exceeding amount is not allowed to be recognized.
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3.
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The formula of aforementioned exceeding amount of depreciation as below:
The amount of deprecation based on the original expense x (1-maximum expense/practical expense) = exceeding amount of deprecation.
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4.
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The computation of loss or benefit for used passenger cars in sales, destruction, or disposed shall be in the basis of the amount by depreciation to calculate in accordance with Income Tax Act.
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