The Kaohsiung National Taxation Bureau of the Ministry of Finance stated that in order to encourage business operators to declare business tax through the Internet, according to Article 15 of the Penalty Standards for Reduction and Exemption of Tax Violations If the ratio of the input tax amount to the total input tax amount for the current period and the ratio of the underreported output tax amount to the total output tax amount for the current period are both below 7%, the penalty shall not be imposed. “Registration errors” refer to various errors that occur when a business person registers input and sales data, including data registration errors, missing registrations, and repeated registrations, etc., but does not include reporting and offsetting tax deductions with other people or voided input vouchers.
The Bureau gave an example as follows:
On September 10, 2011, Company A declared the business tax for July-August 2011 through the Internet. The total input tax amount declared was 170,000 yuan, and the total output tax amount was 171,000 yuan. The input tax amount was overstated due to the wrong registration The applicable circumstances of the under-reimbursed tax amount are as follows:
|Approved situation||Input tax|
|No abnormality||Overstated by $6,000
|Overstated by $25,000
|Input tax||No abnormality||Approved according to the number of declarations||Exemption||should be punished|
|Underreported by $9,000
|Exemption||Exemption||should be punished|
|should be punished||should be punished||should be punished|
|Calculation of over-declared input tax amount ratio: over-declared input tax amount / (total declared input tax amount – over-declared input tax amount)|
|Calculation of under-reimbursed tax amount ratio: under-reimbursed tax amount / (total declared output tax amount + under-reimbursed tax amount)|
The bureau finally reminded that after the business tax declaration, the business operator should still check whether the declared output tax amount or input tax amount is correct, so as to avoid being punished if the output tax amount or input tax amount registration error rate exceeds 7%.