A small-scale business operator who accepts payment via mobile payment devices may enjoy up to three years of tax incentives (Taiwan)

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.