- 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.
