The annual settlement declaration must declare the branch’s operating income, costs, gross profit, expenses, net profit and non-operating income or losses.

Taiwan branch shall fill in the settlement declaration form from 1 May to 3 May each year and report to the National Taxation Bureau the company’s income and tax payable in the previous year. Company limited and limited company shall declare the undistributed surplus for the previous year with the additional 5% tax to it. Foreign companies Taiwan branch does not have to impose an additional 5% tax, but they still have to file settlement declaration. Therefore, from 1 May to 30 May each year, would be the peak season for declaration of company with fiscal year from 1 January to 31 December.

The fiscal year of ordinary company is in accordance with the provision of Income Tax Act and runs from 1 January to 31 December of the current year. The company can apply for a special period for fiscal year when registering for establishment, or it can change the fiscal year afterwards.

The minimum taxable amount and rates for corporate income tax are as follows:

Total Taxable Income	Rate
Under NT$ 120,000	Waive
Over NT$120,000	20%

Operating losses from previous years shall not be included in the calculation of the current year. However, if the company keeps a complete set of account books and evidential documents, annual settlement for losses and entrusted an accountant to perform tax audit for the year of losses.

Except those which comply with the relevant provisions for exemption of provisional payment, Taiwan branch shall settle the provisional tax which amount should be half of the corporate income tax payable from the previous year, from 1 September to 30 September each year. Companies shall also fill in the provisional tax declaration from in prescribed format, attached with the provisional tax payment receipt and declare to the National Taxation Bureau. However, if a Taiwan company, without using investment tax credit, refundable tax from administrative remedy and withholding tax to offset the amount of provisional tax payment in the preceding provisional tax payment, shall be exempt from filing a provisional income tax return according to the provision, if it pays the provisional tax to the public treasury.

A company organized by corporate (including foreign corporate Taiwan branch), which keeps a complete set of account books and evidential documents, after examine by a certified public accountant, and files the return within the said period, may alternatively compute the amount of provisional tax payment, which is based on the operating income incurred for the first six months of the current year under the relevant provisions of the Income Tax Act and applied with the tax rates.

For companies practicing special fiscal year may compute according to calendar-year, i.e., adding 8 months upon the starting month of the special fiscal year (eg: a company with April as the starting month of its fiscal year, it shall file the provisional tax from 1 December to 31 December).

Selling of goods or service or imported goods to Taiwan shall be subject to business tax in accordance with “Value-added and Non-value-added Business Act” (hereinafter referred to “Business Tax Act”). The company should apply for taxation registration with the Taiwan National Taxation Bureau for tax filing.

When a Taiwan branch sells taxable goods or services, the price should include tax, and a " Taiwan Uniform Receipt" printed by the Taiwan government should be issued to the buyer. If the buyer is a company, the sales amount and output tax shall be separately listed on the receipt to benefit the buyer as input deduction.

Except as otherwise provided in this Act, Taiwan branches shall, regardless of whether they have sales amount, fill in a declaration form in the prescribed format, attach with tax refund amount and other related documents, and submit to National Taxation Bureau for sales amount, business tax payable or overpaid, within 15 days from the beginning of the next phase. Those who have the amount of business tax payable should first pay it to the public treasury, and then report it together with the payment receipt. For example: the business tax for January and February should be paid before March 15.

If the Taiwan branch sells goods or services and applies the zero tax rate according to the regulations, it can apply one phrase in a monthly basis, and declare the sales, payable or overpayment of business tax to the Taiwan National Taxation Bureau before the 15th of the following month. However, it cannot be changed within the same year.