- The Taiwanese Ministry of Finance clarified input tax deductions on gifts to shareholders.
- Businesses cannot deduct input VAT on goods or services used for entertainment unrelated to business promotion.
- This includes gifts given to shareholders during meetings.
- Businesses that mistakenly declare input tax for deduction can report and pay the omitted tax automatically before an investigation by tax authorities.
Source: news.bloombergtax.com
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.
