- Business owners who rent out properties and forfeit security deposits due to early termination of leases must issue unified invoices and pay business tax.
- This applies to any penalty fees collected for early termination of leases.
- The forfeited security deposit is considered a penalty fee and is subject to business tax.
- Business owners must issue unified invoices and pay business tax when collecting penalty fees or forfeiting security deposits.
- They can contact the Taipei National Tax Bureau for any questions.
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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