2020 年 8 月 1 日

The tax liability for inheritance tax is an inherent liability of the inheritor (Taiwan)

Tiffany Hsiao The Supreme Administrative Court rendered the 108-Tai-Shang 2528 Decision of February 27, 2020 (hereinafter, the “Decision”), holding that an inheritor does not assume the tax liability for inheritance tax until the death of the inheritee, and that the […]
2020 年 7 月 1 日

The profit-seeking enterprise could not assert that it was eligible for the tax exemption right under the Statute for Upgrading Industries unless it has obtained an approval.(Taiwan)

Tiffany Hsiao The Supreme Administrative Court rendered the 109-Pan-77 Decision of February 13, 2020 (hereinafter, the “Decision”), holding that a tax agency reviews the compliance of a tax-free income filed by a profit-seeking enterprise based on the precondition of whether […]
2020 年 6 月 1 日

A building on land, whether or not a user license is obtained for it or its initial ownership registration is completed, is deemed a special good subject to special sales tax as long as it is held for a period not exceeding two years (Taiwan)

Ariel Lin The Supreme Administrative Court rendered the 108-Pan-570 Decision of December 12, 2019 (hereinafter, this “Decision”), holding that a building on land, whether or not a user license is obtained for it or its initial ownership registration is completed, […]
2020 年 5 月 1 日

Business taxes basically are value-added business taxes, and the balance of the output tax less the input tax as filed for the current period should serve as the payable or overpaid business tax amount for the current period without giving rise to the issue of double taxation (Taiwan)

Fang-Wei Lin The Supreme Administrative Court rendered the 108-Pan-586 Decision of December 19, 2019 (hereinafter, the “Decision”), holding that business taxes are value-added business taxes in principle, and the balance of the output tax less the input tax as filed […]
2019 年 10 月 31 日

For a foreign insurance company whose head office is not located in the ROC, interest and property transaction gains earned by its affiliates from their investment in the ROC are business profits generated in the ROC and should be regarded as income generated from sources in the ROC (Taiwan)

Tiffany Hsiao The Supreme Administrative Court rendered the 108-Pan-317 Decision of June 27, 2019 (hereinafter, the “Decision”), holding that for a foreign insurance company whose head office is not located in the Republic of China (ROC), interest and property transaction […]
2019 年 9 月 30 日

A building provided for production use may be property under a self-interest trust, and an application to halve the housing tax may be filed (Taiwan)

Tiffany Hsiao The Ministry of the Interior issued the Tai-Cai-Shui-10804518460 Directive of July 23, 2019 (hereinafter, the “Directive”), pointing out that a building provided for production use may be a property under a self-interest trust, and an application to halve […]
2019 年 8 月 31 日

The Legislative Yuan adopted the Statute for Repatriation of Offshore Funds for Management, Utilization and Taxation to provide tax incentives to the repatriation of offshore funds (Taiwan)

Fang-Wei Lin The Legislative Yuan adopted the Statute for Repatriation of Offshore Funds for Management, Utilization and Taxation (hereinafter, the “Statute”) during the 3rd Meeting of the 1st Special Session of the 7th Session of the 9th Term on July […]
2019 年 6 月 30 日

Announcement of the Ministry of Finance and the State Taxation Administration on Enterprise Income Tax Policies for Integrated Circuit Design and Software Industries (Mainland China)

2019.5.17 Joyce Wen On May 17, 2019, the Ministry of Finance and the State Administration of Taxation issued the Announcement on Enterprise Income Tax Policies for Integrated Circuit Design and Software Industries (the “Announcement”).  The State Council had previously issued […]
2019 年 6 月 30 日

In case of an employee’s exercise of a warrant with the acquisition of stock as the exercise timing, the positive difference between the closing price of the target stock on the exercise date and the subscription price of the stock shall be the income, and taxation on such basis does not violate the principle of the ability to pay (Taiwan)

2018.12.27 Yi-Shan Cheng The Taipei High Administrative Court rendered the 107-Su-905 Decision of December 27, 2018 (hereinafter, the “Decision”), holding that in case of an employee’s exercise of a warrant with the acquisition of stock as the exercise timing, the […]
2019 年 5 月 31 日

If a party cannot substantiate the purposes of a cash withdrawal and the funding sources of his/her child’s deposit, and that an agency findsthat the party converts the money withdrawn from his/her account into a certificate of deposit of his/her child in a short proximity of time, the agency has fulfilledthe burden of proof to substantiate the criteria for imposing gift taxes (Taiwan)

2019.2.21 Fang-Wei Lin The Supreme Administrative Court rendered the 108-Pan-76 Decision of February 21, 2019 (hereinafter, the “Decision”), holding that when a party cannot substantiate the purposes of a cash withdrawal and the funding sources of his/her child’s deposit, and […]
2019 年 4 月 30 日

Interpretation on relevant requirements for the exemption of business taxes on revenues generated by schools from industry-academic cooperation (Taiwan)

2019.1.8 Tiffany Hsiao The Ministry of Finance issued the Tai-Cai-Shui-10700704180 Circular of January 8, 2019 (hereinafter, the “Circular”) to interpret the requirements for exempting business taxes on revenues generated by schools for industry-academic cooperation conducted in accordance with the subparagraphs […]
2019 年 3 月 31 日

The MOF specific stipulates three types of overseas funds repatriated by individuals which are exempt from income taxes to increase the willingness to repatriate funds for investment purposes (Taiwan)

2019.1.31 Yi-Shan Cheng The Ministry of Finance issued the Tai-Cai-Shui-10704681060 Directive of January 31, 2019 (hereinafter, the “Directive”) to stipulate the three types of overseas funds repatriated by individuals which will be exempt from income taxes as well as the […]
2019 年 3 月 31 日

Pursuant to an MOF directive, a consumers cooperative’s income incurred from sales to a non-member is subject to profit-seeking enterprise income tax (Taiwan)

2019.1.30 Fang-Wei Lin The Tai-Cai-Shui-10700651310 Directive of January 30, 2019 (hereinafter, the “Directive”) issued by Ministry of Finance (hereinafter, the “MOF”) points out that when a consumers cooperative engages in consumer business pursuant to Article 3 of the Cooperatives Law, […]
2019 年 2 月 28 日

In case of an entity’s continued engagement of specific economic activities for profit-seeking purposes, the entity is still regarded as a profit-seeking enterprise and shall be taxed for its income even though no business registration has been sought (Taiwan)

2018.11.26 Yi-Shan Cheng The Supreme Administrative Court rendered the 107-Pan-696 Decision of November 26, 2018 (hereinafter, the “Decision”), holding that in case of an entity’s continued engagement of specific economic activities for profit-seeking purposes, the entity is still regarded as […]
2019 年 2 月 28 日

Circular of the State Administration of Taxation on the Thorough Implementation of Tax and Fee Reduction Policy Measures (Mainland China)

2019.1.21 Karl Zhang Recently, the State Administration of Taxation issued a circular (hereinafter, the “Circular”), requiring all levels of tax agencies to thoroughly implement the tax and fee reduction policy, specifically including the following aspects: 1. Proactive action According to […]
2019 年 2 月 28 日

Interpretation on relevant requirements for the exemption of consolidated income taxes on gains obtained by victims in fraud cases in which final criminal decisions have been rendered by courts (Taiwan)

2018.12.20 Feng-Wei Lin The Ministry of Finance issued the Tai-Cai-Shui-10704683960 Circular of December 20, 2018 (hereinafter, the “Circular”) to interpret relevant requirements for exempting consolidated income taxes on gains obtained by victims in criminal fraud cases criminally concluded by courts. […]
2019 年 2 月 28 日

Circular of the Ministry of Finance and the State Administration of Taxation on the Implementation of the Inclusive Tax Reduction or Exemption Policy for Small and Micro Enterprises (Cai Shui [2019] No. 13) (Mainland China)

2019.1.17 Karl Zhang To further support the development of small and micro enterprises, the Ministry of Finance and the Administration of Taxation have jointly issued a circular (hereinafter, the “Circular”) recently regarding the implementation of the inclusive tax deduction or […]
2019 年 1 月 31 日

Interpretation on relevant provisions concerning income taxes on the trading of houses and lands by individuals to whom such houses and lands are given by their spouses who have inherited such houses and lands (Taiwan)

2018.10.31 Tiffany Hsiao The Ministry of Finance issued the Tai-Cai-Shui-10704604570 Circular of October 31, 2018 (hereinafter, the “Circular”) to interpret relevant requirements for income taxes on the trading of houses and lands by individuals to whom such houses and lands […]
2019 年 1 月 31 日

The Tax Collection Law is amended to announce the name of a person who evades taxes while enjoying tax incentives (Taiwan)

2018.11.20 Yi-Shan Cheng The Legislative Yuan adopted the amendments to the Tax Collection Law (hereinafter, the “Law”) during the 9th Meeting of the 6th Session of the 9th Term on November 20, 2018.  The Amendments are highlighted below: First, the […]
2018 年 11 月 30 日

The MOST formulated the Operating Guidelines for the Application to Defer Income Taxes on the Distribution of Shares to Authors in Taiwan by Academic or Research Institutions in Taiwan (Taiwan)

2018.9.21 Yi-Shan Cheng For an academic or research institution which assigns or licenses its intellectual property rights developed on its own and owned by it pursuant to Article 6, Paragraph 1 of the Fundamental Science and Technology Law to a […]
2018 年 11 月 30 日

Interpretation of the requirements for imposing business taxes on the exchange commissions forwarded by an overseas acquirer to a domestic credit card issuer and on the exchange commissions received from domestic merchants and forwarded by a domestic acquirer to an overseas credit card issuer (Taiwan)

2018.10.3 Tiffany Hsiao The Ministry of Finance issued the Tai-Cai-Shui-10704603930 Circular of October 3, 2018 (hereinafter, the “Circular”) to interpret relevant requirements for filing and paying business taxes on the exchange commissions received from overseas merchants and forwarded by an […]
2018 年 9 月 30 日

A mobile device start-up using a home address for business taxation registration may be taxed based on the tax rate for residences or for self-use residential lands (Taiwan)

2018.7.23 Yi-Shan Cheng The Ministry of Finance issued the Tai-Cai-Shui-10704004880 Circular of July 23, 2018 (hereinafter, the “Circular”), holding that if a profit-seeking enterprise uses the property owned by its representative or the spouse or any direct relative of the […]
2018 年 9 月 30 日

Taxes on assets of a public enterprise set up pursuant to the Company Law may be exempt if they are designated and registered as cultural heritage (Taiwan)

2018.7.25 Tiffany Hsiao The Ministry of Culture issued the Wen-Shou-Zi-Ju-Zong-10730081351 Circular of July 25, 2018 (hereinafter, the “Circular”) to communicate that if a public enterprise is set up pursuant to the Company Law, Article 99 of the Cultural Heritage Preservation […]
2018 年 9 月 30 日

In case of application to reduce or refund commodity taxes on new vehicles after consolidation of companies, the period in which used vehicles were registered under the name of the dissolved company should be included for calculation (Taiwan)

2018.7.17 Fang-Wei Lin The Ministry of Finance issued the Tai-Cai-Shui-10700548670 Circular of July 17, 2018 to communicate that in case of consolidation of companies pursuant to Business Mergers and Acquisitions Act, the surviving or newly established company, purchasing new small […]
2018 年 8 月 31 日

For an enclosed building which controls air pollution and which is newly constructed pursuant to applicable requirements, if such building is conveyor equipment, the housing tax may be exempt (Taiwan)

2018.6.21 Tiffany Hsiao The Ministry of Finance issued the Tai-Cai-Shui-10700554630 Circular of June 21, 2018 (hereinafter, the “Circular”) to point out that if an enclosed building which is newly constructed pursuant to applicable requirements is regarded as an air pollution […]
2018 年 8 月 31 日

Donations to administrative institutions by individuals or profit-seeking enterprises may be included, without any limitation on the amount, as donations for itemized deduction from their consolidated personal income taxes of such individuals or as annual expenses or losses of the profit-seeking enterprises for the year (Taiwan)

2018.6.20 Ariel Lin The Ministry of Finance issued the Tai-Cai-Shui-10700556910 Circular of June 20, 2018 (hereinafter, the “Circular”), pointing out that donations of individuals or profit-seeking individuals to central or local administrative institutions set up pursuant to the Administrative Institution […]
2018 年 7 月 31 日

If a business operator sells bonded goods to overseas customers and obtain foreign exchange income during their storage in a bonded warehouse, a zero tax rate may apply to the business taxes (Taiwan)

2018.5.23 Fang-Wei Lin The Ministry of Finance rendered the Tai-Cai-Shui-10704514390 Circular of May 23, 2018 (hereinafter, the “Circular”) to communicate that under Article 7 of the Value-added and Non-value-added Business Tax Law, if a business operator (including operators in taxed […]
2018 年 7 月 31 日

The Statute for Industrial Innovation was amended so that employee stock remuneration can be taxed at a lower rate (Taiwan)

2018.5.29 Tiffany Hsiao The Legislative Yuan adopted the amendments to Article 19-1 and Article 72 of the Statute for Industrial Innovation (hereinafter, the “Statute”) during the 14th Meeting of the 5th Session of the 9th Term on May 29, 2018.  […]
2018 年 7 月 31 日

The membership shares of a credit cooperative do not meet the criteria for free circulation because they cannot be transferred freely; since this is not compatible with the nature of securities transactions, the Securities and Exchange Law and the Statute for Securities Transaction Taxes certainly do not apply (Taiwan)

2018.3.29 Yi-Shan Cheng The Supreme Administrative Court rendered the 107-Pan-170 Decision of March 29, 2018 (hereinafter, the “Decision”), holding that the membership shares of a credit cooperative do not meet the criteria for free circulation because they cannot be transferred […]
2018 年 6 月 30 日

The Statute for Securities Transaction Taxes is amended to extend the tax reduction measures to the end of 2021 (Taiwan)

2018.4.27 Tiffany Hsiao The President promulgated Article 2-2 of the Statute for Securities Transaction Taxes (hereinafter, the “Statute”) as amended via the President-Hua-Zhong-One-Yi-10700047611 Directive of April 27, 2018 to extend the tax reduction measures to the end of 2021.  Pursuant […]