Taiwan: Tax payment applicable to non-resident e-commerce companies
The Taiwanese Ministry of Finance simplified the filing and payment requirements for business taxes for non-resident e-commerce companies. The clarification aims to guide businesses that are operating in the country.
The selling of all goods and services in Taiwan is subject to business tax, as is the importation of goods into Taiwan.
| Type of Business Tax | Rate | Goods or services |
| Value-added tax (VAT) | 5% | General industries |
| Gross receipts tax (GBRT) | 5% | Core business operations of banks and insurance enterprise |
| 2%
|
Trust companies, securities and futures firms, short-term commercial paper enterprises, and pawnshops | |
| 1% | Re-insurance enterprises |
Furthermore, the explanation clarified the following rules:
- domestic business owners and government organizations must declare a business tax;
- non-resident e-commerce businesses must report and pay business tax if they sell to domestic natural people an electronic labor service;
- domestic buyer is excluded from paying business tax to the foreign e-commerce company, the labor services it purchases, and the users that solely provide taxable goods or services domestically;
- tax payable is determined based on the percentage of the input tax that does not balance the tax and the tax owed;
- tax on the acquisition of foreign services is paid by completing a business tax payment form within 15 days of the payment of compensation.
Source: mof.gov.tw
