- Sales of services provided and used within Taiwan are subject to business tax, even if foreign exchange income is obtained.
- Services related to exports or used abroad are subject to a zero tax rate under the Value-Added and Non-Value-Added Business Tax Act.
- Documents required for applying the zero tax rate include foreign exchange certificates issued by designated banks or original foreign exchange income receipts.
- Incorrectly claiming zero tax rate for services provided and used domestically can result in penalties.
- It is important for businesses to review service contracts to determine the location of service provision and usage to avoid tax errors.
- If there are any questions or concerns, businesses can contact the National Taxation Bureau for assistance.
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.
