- Businesses must deduct refunded import tax from input tax in the refund period
- The Taipei National Taxation Bureau states this deduction should occur in the month of the refund
- According to the Business Tax Law, refunded tax due to returns or discounts must be deducted in the period it occurs
- Import tax collected by customs can be deducted if it does not violate specific regulations
- Businesses must file a declaration form for customs tax refunds in the refund period
- Example: Company A paid 500,000 in import tax, later corrected an error, and received a 50,000 refund, which must be deducted in the relevant period
- Businesses failing to deduct in the correct period can report and pay the missed tax with interest without penalty if done before an investigation
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.
