- Sole proprietorships changing responsible persons must declare business tax when transferring inventory.
- If inventory is transferred to the new responsible person, it is considered a sale of goods.
- Declaration must be made within 15 days to the local tax bureau, except in cases of inheritance.
- Even if the business registration number remains the same, the responsible persons are different legal entities.
- A unified invoice must be issued at market value to the transferee.
- The transferee can claim input tax credit against output tax.
- Example: A sole proprietorship changes from Chen to Lin, transferring inventory for 525,000 NTD.
- Chen must issue a unified invoice for 500,000 NTD sales and 25,000 NTD tax.
- Businesses should comply with regulations to avoid penalties for not issuing invoices.
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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