- Businesses with dividend income obtained during the year should include it in the final quarterly sales tax exempt amount for that year’s reporting.
- The Taipei National Tax Bureau of the Ministry of Finance stated that businesses engaged in investment activities should aggregate the dividend income obtained during the year into the exempt sales amount for the final quarter of that year’s business tax report.
- They should also fill out the “Calculation Table of Business Tax Amount for Business Operators Engaged in Both Business and Investment” and adjust the tax amount according to the proportion that cannot be deducted for that year, and pay it together with the business tax for that quarter.
- According to the regulations of the Ministry of Finance letter No. 780651695 dated May 22, 1989, business operators engaged in investment activities can temporarily exclude the dividend income obtained during the year from the reporting of the exempt sales amount for the current quarter to simplify the reporting procedures.
- The full year’s dividend income should be aggregated and included in the calculation of the payable or overpaid tax amount for the final quarter of the business tax for that year, following the provisions of the “Business Tax Calculation Method for Business Operators Engaged in Both Business and Investment” (hereinafter referred to as the dual operation method), and paid accordingly.
- The Bureau discovered that a company, in violation of the dual operation method, failed to include domestic cash dividends of 3,000,000 yuan and foreign business dividends of 1,000,000 yuan in the exempt sales amount, resulting in a false report of the input tax amount and consequent penalties and supplementary taxes.
- The Bureau emphasized that business operators engaged in investment activities should include both domestic and foreign cash dividends obtained from investment securities in the final quarter’s exempt sales amount for the business tax and adjust the non-deductible input tax amount accordingly to avoid penalties and supplementary taxes.
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.
