- Contract breach penalties (liquidated damages) are subject to business tax and require invoice issuance.
- Late payment interest under the Civil Code is tax-exempt and does not require invoices.
- Authorities warn against disguising sales as “interest” to evade taxes; such actions will be reclassified as taxable.
- Businesses can self-report and pay overdue taxes on penalties to avoid further penalties before an official investigation.
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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