- 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.
Latest Posts in "Taiwan"
- Taiwan Enforces VAT and Tax Registration for Online Sellers Exceeding Sales Threshold
- Taiwan Clarifies Zero Business Tax Rate Nonapplication for Import Facilitation Services and Compliance Requirements
- Entrepreneurs Must Register for Tax and Issue Invoices Before Starting Business Operations
- Taiwan Clarifies Need for Individuals to Register for Tax if Selling Goods or Services Through Social Media
- Taiwan Clarifies Input Tax Deductions on Shareholder Meeting Gifts and Reporting Errors
