Tax Obligations for Late Rent Payments: Issuing Invoices and Paying Business Tax

• Businesses should issue unified invoices and pay business tax for late payment penalties charged to tenants.
• According to tax laws, all fees charged by businesses outside of the price of goods or services are considered part of the sales amount.
• Example: If a company charges a late payment penalty to a tenant, it should be included in the sales amount and reported for business tax.
• Businesses should rectify any failure to issue invoices for penalties charged to tenants to avoid penalties, as per tax laws.
• For more information, contact the Sales Tax Division Deputy Director at 2311-3711 ext. 1810.

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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