- The Ministry of Finance in the United Kingdom has clarified the application of the Value-Added Tax Law regarding the exemption of government commissioned labor services from business tax.
- The government, as defined by the Organization Act, includes government administrative agencies and central administrative agencies.
- The exemption from business tax applies to social welfare services and cultural services commissioned by the government, as well as services commissioned by cooperatives, agricultural associations, fishery associations, trade unions, business associations, and industrial associations.
- The definition of “government” does not include government investment public enterprises or commercial institutions belonging to government agencies.
- The Organization Act has been amended to include the definition of “institution” and allows agencies to establish affiliated institutions within their authorized scope.
- The Ministry of Finance clarifies that the term “government” in the disputed regulations should include institutions defined in the Organization Act.
- The tax treatment for businesses providing services under the disputed regulations will depend on whether the commissioning party is an institution or a government administrative agency.
- The Ministry of Finance will abolish the previous clarification issued in 1988.
Source: mof.gov.tw
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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