REVISED BUSINESS ACCOUNTING LAW REQUIRES COSTING OF EMPLOYEE BONUSES
Taiwan’s Legislative Yuan on 28 April 2006 passed revisions to the Business Accounting Law and the same was and promulgated by President Chen on 24 May 2006. Below are the main items of the revised Act:
1. The maximum fine for violations of this Act by a responsible persons of a business, or by accounting personnel, or personnel entrusted to conduct accounting work for others has been increased from NT$ 150,000 to NT$ 600,000.
2. The prohibition against the identification of dividend and bonus payouts as expenses has been deleted. In the future, such payouts shall be identified as costs or losses, thereby bringing Taiwan’s financial reporting into compliance with international standards.
The relevant subsidiary acts, including the Regulation on Business Entity Accounting Handling, will be revised by Taiwan’s Commerce Department, which acts under the Ministry of Economic Affairs.
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