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Small Businesses Can Reduce Business Tax by Claiming Input Tax Credits

  • Small-scale businesses can deduct input tax from their assessed tax.
  • To qualify, they must obtain invoices with their name, address, tax ID, and tax amount.
  • The invoices must be for business use, not for entertainment, employee compensation, or personal vehicles.
  • They must file their invoices by the 5th of January, April, July, and October.
  • The deduction is 10% of the input tax.
  • Any excess deduction can be carried over to the next period.

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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