- Businesses renting out property and collecting deposits must calculate interest and issue invoices for business tax.
- Interest on deposits should be calculated using the fixed interest rate for one-year postal savings as of January 1st of that year.
- Monthly sales amounts should be invoiced to the lessee, but if the interest amount is small, annual calculation is allowed.
- Example: Company A rents machinery to Company B, collects a deposit of 30,000 NTD, and calculates monthly interest of 43 NTD.
- Company A should issue a monthly invoice with a sales amount of 41 NTD and tax of 2 NTD.
- Alternatively, Company A can calculate annually, issuing an invoice for a sales amount of 493 NTD and tax of 25 NTD in the first month.
- Businesses should ensure compliance with relevant regulations and can contact the tax bureau for inquiries.
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.
