- When a sole proprietorship in Taiwan changes its responsible person and transfers inventory or fixed assets, proper invoicing and business tax declaration are required.
- Failure to issue uniform invoices and pay business tax during such transfers can result in penalties for tax evasion.
- The transfer of inventory and fixed assets is considered a sale, requiring the original owner to issue an invoice and pay tax based on market value.
- The new owner can claim input tax deductions using the invoice.
- Voluntary disclosure and payment of outstanding taxes before investigation may exempt businesses from penalties.
Source: regfollower.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.
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