2017-08-07
Tax Benefits for Some Cram Schools to be Revoked
In 1986, Taiwan's Ministry of Education issued an interpretation, stating that cram schools are a kind of supplementary education, beneficial to the improvement of the education level of the general public, and hence are exempted from the 5% Business Tax responsibility.
However, thirty-two years since the Ministry of Education issued said interpretation, Taiwan's society has changed such that national education has improved so that cram schools are no longer vital to the cause of education.
Moreover, after the publicity involving a scandal last year of a famous cram school teacher, several legislators have discovered that supplementary education is a lucrative business and should not be afforded such a tax benefit.
Therefore, the 5% business tax exemption for cram schools not approved by the Ministry of Education or for which operate in the form of corporation will be revoked starting 1 January, 2018. However, the tax exemption for cram schools operated by individual persons will remain effective.
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