- Businesses in Taiwan with both taxable and tax-exempt sales must follow specific rules for input tax credits on fixed assets.
- Two calculation methods are allowed: proportional deduction (based on the ratio of tax-exempt sales) and direct deduction (requiring detailed accounting records).
- Input tax on assets used exclusively for tax-exempt operations cannot be deducted.
- Accurate assessment and voluntary correction of errors can help businesses avoid penalties under Article 48-1 of the Tax Collection Act.
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.
Latest Posts in "Taiwan"
- Taiwan Clarifies Tax Rules: Contract Penalties Taxable, Late Payment Interest Exempt from Business Tax
- Taiwan Clarifies Tax Invoice Rules for Sole Proprietors Changing Responsible Person and Transferring Assets
- Sole Proprietorship Change: Transfer of Inventory and Assets Requires Business Tax Declaration and Invoice Issuance
- Penalty Fees Subject to Business Tax; Late Payment Interest Exempt: Taxation Clarification by Authorities
- U.S.–Taiwan Agreement on Reciprocal Trade: What the AIT‑TECRO ART Does
