March 2018
A small-scale business operator who accepts payment via mobile payment devices may enjoy up to three years of tax incentives (Taiwan)
2018.1.12
Sean Liu
The Ministry of Finance issued the Tai-Cai-Shui-10604698750 Directive of January 12, 2018 to prescribe the Operating Guidelines for Tax Incentives Applicable to Small-scale Business Operators Who Introduce Mobile Payment (hereinafter, the "Guidelines"), which grant tax incentives for up to three years to small-scale business operators who adopt payment via mobile payment devices, to encourage small-scale business operators to accept mobile payment by consumers when they sell goods and services inphysical stores.
Item 6 of the Guidelines provide that Article 13, Paragraph 1 of the Value-added and Non-value-added Business Tax Law, a small-scale business operator subject to business taxes levied based on assessment may apply for the tax incentives under this paragraph pursuant to Item 4 of the Guidelines during January 12, 2018 through December 31, 2020 if they: (1) accept payment by consumers using smart mobile devices (such as smartphones, tablets, smart watches or smart wristbands) in physical stores selling goods or services; (2), have retainedits mobile payment operators to make the application; and (3) the entrusted mobile payment operators haveprovided sales amount information to the competent tax authority to assess the sales amount and business tax amount in accordance with Subparagraphs 3 of Item 7. For a small-scale operator eligible for the tax incentives under Item 5 of the Guidelines, the tax authority shall assess and levy the business tax by a tax rate of one percent during the period between the quarter the application is approved and December 31, 2020 with an exemption of uniform invoices.
Sean Liu
The Ministry of Finance issued the Tai-Cai-Shui-10604698750 Directive of January 12, 2018 to prescribe the Operating Guidelines for Tax Incentives Applicable to Small-scale Business Operators Who Introduce Mobile Payment (hereinafter, the "Guidelines"), which grant tax incentives for up to three years to small-scale business operators who adopt payment via mobile payment devices, to encourage small-scale business operators to accept mobile payment by consumers when they sell goods and services inphysical stores.
Item 6 of the Guidelines provide that Article 13, Paragraph 1 of the Value-added and Non-value-added Business Tax Law, a small-scale business operator subject to business taxes levied based on assessment may apply for the tax incentives under this paragraph pursuant to Item 4 of the Guidelines during January 12, 2018 through December 31, 2020 if they: (1) accept payment by consumers using smart mobile devices (such as smartphones, tablets, smart watches or smart wristbands) in physical stores selling goods or services; (2), have retainedits mobile payment operators to make the application; and (3) the entrusted mobile payment operators haveprovided sales amount information to the competent tax authority to assess the sales amount and business tax amount in accordance with Subparagraphs 3 of Item 7. For a small-scale operator eligible for the tax incentives under Item 5 of the Guidelines, the tax authority shall assess and levy the business tax by a tax rate of one percent during the period between the quarter the application is approved and December 31, 2020 with an exemption of uniform invoices.
