Various Taxes
Business Tax｜Profit-seeking Enterprise Income Tax｜Individual Income Tax｜Land Tax｜House Tax｜Estate Tax
Business Tax
Deductible Input Tax
- Rental Expense: the cost of renting business premises or equipment
- Stationery: office stationery
- Transportation Expense: high-speed rail, Taiwan railway, taxi, etc.
- Freight Expense
- Post and Telecommunications Charges, Telephone Charges, Internet Charges
- Repair Expense: company business vehicles, office equipment, office maintenance
- Advertising Expense
- Water, Electricity, Gas Charges: water and electricity gas fee in the name of the company
- Training Expense: the cost of training employees
- Books, Newspapers and Magazine Fees
- Miscellaneous Purchases
Non-Deductible Input Tax
- Communication Expense: dining with customers and gift-giving expenses
- Insurance Expense: insurance for labor and health insurance expenses, vehicles, business premises, etc.
- Tax
- Insurance Expense: insurance for labor and health insurance expenses, vehicles, business premises, etc.
- Retirement pay: pay employee the withholding of labor pension
- Employee Welfare: employee welfare expenditure
- Commission Payment: agency sales, etc.
- Meal Expense
- Labor Service Charges: accounting fees, attorney fees, land administration agents fees, etc.
Profit-seeking Enterprise Income Tax
Audit by Reviewing Declaration on Tax Returns Expanding to the Cases Qualified for the Standards Issued by the MOF
| Audit by Reviewing Declaration on Tax Returns Expanding to the Cases Qualified for the Standards Issued by the MOF | |
|---|---|
| Applicable Conditions | 1. （annual net operating income + non-operating income）≦NT$30 million 2. The account books and reports are complete, and the net profit rate adjusted according to the law is above the “expanded book review net profit rate”. 3. Pay the tax payable before the deadline. |
| Advantages | 1. If there is no major abnormality, there is less chance of being checked by National Taxation Bureau. 2. The outsourcing bookkeeping fee is lower. |
| Disadvantages | 1. In case the National Taxation Bureau checks accounting books certificate, accounting records may be incomplete due to lack of evidence, or record doesn’t match the provisions approved back taxes, but the amount of the settlement to be paid by law to declare the tax is much higher. 2. The profit and loss of different years cannot be offset. |
Audit by Reviewing Accounting Books
| Audit by Reviewing Accounting Books | |
|---|---|
| Applicable Conditions | 1.（annual net operating income + non-operating income）≧NT$30 million 2. Usually record the account book vouchers first calculate the income and pay the tax, then accept the National Taxation Bureau audit and check the decision to adjust the additional tax. |
| Advantages | Verification of tax, there is no need to pay tax on losses. |
| Disadvantages | 1. The company must prepare complete accounts and certificates for the tax collection agency to investigate. If the accountant is not familiar with the tax law, it may cause the consequences of paying taxes and penalties due to negligence. 2. The profit and loss of different years cannot be offset. |
Declaration of Accountant Tax Compliance Audit
| Declaration of Accountant Tax Compliance Audit | |
|---|---|
| Applicable Conditions | 1. （annual net operating income + non-operating income）≧NT$100 million 2. There are more detailed cost records and the income and expenditure are correct. 3. The voucher can be checked by the National Taxation Bureau. 4. An accountant must be entrusted with a tax visa to prepare a visa report and keep a check record. |
| Advantages | 1. legal tax saving plan 2. profits and losses can be offset 3. increase in the limit of social expenses 4. reduce the risk of tax inspections 5. reduce the cost of tax inspection communication |
| Disadvantages | Need to pay additional accountant visa fees. |
Individual Income Tax
Artificial Declaration
Use the National Taxation Bureau to provide or print in accordance with the format issued by the Ministry of Finance (samples need to be scanned and tested by the Finance and Taxation Information Center, then they can be printed) withholding (exempt) payment vouchers and dividend vouchers.
Media Declaration
Declaring units that use electronic computers to process various types of income data can apply for the declaration of withholding (exempt) payment vouchers and dividend vouchers through media file tapes or floppy disks, and CD-ROM discs.
However, the following 2 items shall not be declared by the media:
1. The income data that cannot be checked (blank) in the tax code number or name of the income person’s national identity card.
2. Information on withholding and exemption and dividends that are not paid in the current year.
Online Declaration
Declaring units that use electronic computers to process various types of income data can apply for tax declaration passwords at the Ministry of Finance’s electronic tax declaration and payment service website（http://tax.nat.gov.tw）, and apply for various income deductions via Internet transmission ( exemption) declaration of payment voucher and dividend voucher information.
Land Tax
Taxation scope of Lan Tax
- Taxpayer:
land owner or mortgage holder, receiver, farming right holder - Taxation scope:
For the land with fixed land value, except for those who are levied according to regulations, land value tax shall be levied on the total land value of each land owner’s land in the municipal area after the total land value is returned to the household.
Land Value Tax Rate
- .Private land:
10/1000 The total land price does not exceed the progressive starting land price of the city’s land.
15/1000 If the total land price exceeds the progressive starting land price by less than 5 times, it will be calculate on its excess.
25/1000 If the total land price exceeds the progressive starting land price by 5 to 10 times, it will be calculate on its excess.
35/1000 If the total land price exceeds the progressive starting land price by 10 to 15 times, it will be calculate on its excess.
45/1000 If the total land price exceeds the progressive starting land price by 15 to 20 times, it will be calculate on its excess.
55/1000 If the total land price exceeds the progressive starting land price by more than 20 times, it will be calculate on its excess.
2/1000 The area of land for self-occupied housing is 3 areas for urban land, and less than 7 areas for non-urban land, land for labor dormitories, land for national housing.
6/1000 Urban planning public facilities reserved land, which will still be used as building users during the reserved period (excluding self-use residences).
10/1000 Industrial, mining, private parks, zoos, stadiums, temples, churches, government-designated places of interest, gas stations approved by the competent authority, and parking lots for public use set up in accordance with urban planning laws and regulations for direct use Land, but not according to the planning approved by the competent authority of the purpose business Not applicable to users. - Public land:
10/1000 According to the declared land price, the basic tax rate is levied
Public land is exempted for public users.
Land Value Tax Penalty
- Those who have not paid the tax within the payment before the deadline:
Overdue payment will add 1% late fee every 2 days from the deadline, up to a maximum of 15%; if the payment is not made within 30 days, it will be transferred to the administrative enforcement agency for enforcement. - Those who fail to report to the competent inspection authority when the reasons for land registration changes, hidden land items, etc., apply to special tax rates, land value tax reduction or exemption, or land tax exemption, and the facts disappear:
1. Tax evasion or reduction of tax shall be imposed a fine of concealing the tax amount or less than 3 times the amount of the tax, except for the part of the supplementary payable.
2. Those who circumvent the payment of in-kind goods shall be fined 1 times the amount of the in-kind land tax payable in addition to the part to be paid.
House Tax
House Tax
| Taipei City Housing Tax Levy Table has been applicable from July 1, 2017 | ||||||
| Situation of Housing Usage | Number of householdings | from July 1, 2017 | ||||
| Tax Rate | ||||||
| home use | self-occupation | 3 households nationwide | 1.20% | |||
| non-profit lessor rental use | unlimited | |||||
| others | public housing for residential use | 1.50% | ||||
| labor dormitory with certification documents issued by the labor authority | ||||||
| student dormitory in public school | ||||||
| co-ownership, except for co-owners who qualify for self-occupation | 2.40% | |||||
| other non-self-occupied | within 2 households in this city | 2.40% | ||||
| more than 3 households in this city | 3.60% | |||||
| non-home use | business use | unlimited | 3% | |||
Estate Tax
Estate Tax
Tax Allowance：NT$12 million (the same below).
Amount of Taxable Distance：
1、For those with a net legacy of less than NT$50 million, 10% will be levied.
2、For those between NT$50 million and NT$100 million, NT$5 million will be levied, plus 15% of the portion exceeding NT$50 million.
3、For those exceeding NT$100 million, NT$12.5 million will be levied, plus 20% of the portion exceeding NT$100 million.
Amount not Included in the Total Amount of the Estate:
1、appliances and utensils necessary for the deceased’s daily life: less than NT$0.89 million
2、occupational tools of the deceased: less than NT$0.5 million
Deduction:
1、deduction for spouse: NT$4.93 million
2、deduction for direct blood relatives and humble relatives: NT$0.5 million per person For those under the age of 20, a deduction of NT$0.5 million per year will be added according to the number of years before the age of 20.
3、parents deduction: NT$1.23 million per person
4、special deduction for severe or above physical and mental disabilities: NT$6.18 million per person
5、deduction for brothers, sisters and grandparents supported by the deceased: NT$0.5 million per person There are brothers and sisters who are under 20 years old, and an additional NT$0.5 million will be deducted each year based on the number of years between their ages.
6、deduction of funeral expenses: NT$1.23 million
Gift Tax
Tax Allowance: NT$2.2 million per year.
Amount of Taxable Distance：
1、For those with a net gift of less than NT$25 million, 10% will be levied.
2、For those between NT$25 million and NT$50 million, NT$2.5 million will be levied, plus 15% of the portion exceeding NT$25 million.
3、For those exceeding NT$50 million, NT$6.25 million will be levied, plus 20% of the portion exceeding NT$50 million.