- Government subsidies received by organizations in Taiwan may be subject to business tax
- According to the National Taxation Bureau, sales of goods or services within Taiwan are subject to business tax
- Non-profit organizations that sell goods or services are also considered business entities and must pay business tax
- If an organization receives a government subsidy as compensation for goods or services provided, it should report and pay business tax accordingly
- For example, if an association receives a subsidy from a government agency for a joint project, the subsidy is considered payment for goods or services and business tax should be paid
- The association should issue a 5-part payment form and submit two copies to the government agency, while paying the tax to the treasury by the 15th of the following month
- Organizations should not assume that government subsidies are exempt from business tax and should review the contract and nature of the payment to determine if tax is applicable
- Failure to pay business tax within the specified period may result in penalties, but can be avoided by self-reporting and paying the tax online through the Ministry of Finance’s tax portal
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.
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