New Regulations on Disposal of Non-performing Loans by Asset Management Companies

• Asset management companies must pay a 5% business tax on the difference between the accumulated distribution amount and the original purchase price of non-performing loans.
• When calculating the sales amount for the disposal of non-performing loans, priority payment taxes should be deducted first.
• An example is given where the accumulated distribution amount exceeds the original purchase price, resulting in the imposition of a 5% business tax.
• The same calculation applies when asset management companies participate in auctions or declare the acceptance of collateral in exchange for non-performing loans.
• Asset management companies must accurately calculate and pay taxes according to the regulations, and can seek clarification through the provided hotline or the tax bureau’s website.

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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