- Purchases of electronic services from foreign e-commerce must comply with tax declaration and payment regulations.
- Businesses and individuals frequently buy electronic services from foreign e-commerce and must declare and pay business tax according to relevant laws.
- The Kaohsiung National Taxation Bureau states that businesses buying online marketing ads or services from foreign entities must declare and pay business tax as per the law.
- Different types of service buyers have varying tax handling methods.
- General businesses are exempt from paying business tax if services are for selling taxable goods or services but must declare payment amounts within 15 days of the next period.
- Mixed businesses must calculate and pay business tax at a rate of 5 percent within 15 days of the next period.
- Small businesses and organizations must fill out a tax payment form and pay business tax at a rate of 5 percent within 15 days of the next period.
- Individuals buying electronic services from foreign e-commerce with annual sales exceeding a certain threshold must register for tax and receive cloud invoices.
- Businesses should understand these regulations to avoid penalties and can report and pay taxes voluntarily to avoid fines.
- For inquiries, contact the free service number or visit the bureau’s website for online assistance.
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.
