萬國法律事務所

Taiwan’s Ministry of Finance ("Ministry") plans to amend the Value-added and Non-value-added Business Tax Act ("Act") and to stipulate a child provision of the Act to regulate tax matters for cross-border e-commerce enterprises ("Enterprises"). Based on the most recent meeting between the Ministry and Enterprises held on 25 August 2016, in which the imposition of value-added and non-value-added business tax on the Enterprises was discussed, three important points of amendment to the Act are proposed and identified below:

1. Tax registration is required if an Enterprise’s annual sales amount is likely to exceed NTD 480,000 (the final criteria will be specifically indicated in the child provision of the Act);

2. The subject responsible for paying the tax is the business enterprise itself and the criteria for exemption from the tax obligation of NTD 3,000 and below/per single transaction of international trade will not apply;

3. The tax filing and the tax registration application must be made by a tax agent, rather than by a business agent.

The Ministry will prepare the draft amendment, and submit the same to the Executive Yuan in early September. The Executive Yuan will provide the same for the Legislative Yuan's review and discussion.