- Businesses must issue a uniform invoice and pay business tax on compensation income from sales of goods or services.
- According to the Value-Added and Non-Value-Added Business Tax Act, all compensation related to sales is considered sales revenue.
- Compensation not related to sales of goods or services is not subject to business tax.
- Example: A company providing car rental services receives compensation for damages during rental; this requires issuing a uniform invoice.
- Businesses should self-audit and report any unissued invoices for compensation income to avoid penalties.
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.
