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How to File Taxes on Dividends from Inherited Listed Stocks?
The National Taxation Bureau of the Northern Area, Ministry of Finance（NTBNA） indicated that listed or over-the-counter (OTC) stocks left by a decedent are considered part of the gross estate and must be reported for estate tax in accordance with the Estate and Gift Tax Act.
Taxpayers Receiving Salary Income Derived from Sources in Mainland China Must File Individual Income Tax Returns to Avoid Penalties
The National Taxation Bureau of Taipei, Ministry of Finance (hereinafter referred to as NTBT) stated that salaries of dispatched employees, derived from services rendered in Mainland China, must be reported in these employees' annual income tax returns and pay any relevant taxes, in accordance with Paragraph 1, Article 24 of the Act Governing Relations between the People of the Taiwan Area and the Mainland Area.
When calculating the investment income of a CFC for the current year, the profit-seeking enterprise shall not deduct the accumulated losses recorded in the CFC's accounts prior to the implementation of the CFC system
The National Taxation Bureau of Taipei, Ministry of Finance, stated that the Controlled Foreign Company (CFC) system has been in effect since 2023. When calculating the investment income of a CFC for the current year, profit-seeking enterprises shall not deduct the accumulated losses recorded in the CFC's accounts prior to the implementation of the CFC system.
A profit-seeking enterprise that sells multiple pieces of real estate subject to the Income Tax on House and Land Transactions and falls under the category of separate calculation with consolidated filing should first offset the transaction losses against
Fengyuan Branch, National Taxation Bureau of the Central Area, Ministry of Finance stated that, according to Articles 4-4 and 24-5 of the Income Tax Act, when a profit-seeking enterprise sells houses or land acquired after January 1, 2016, the transaction income or loss shall be calculated by deducting relevant costs, expenses, or losses from the total income. The remaining balance is the taxable income, which shall be taxed separately at the applicable rate of 45%, 35%, or 20%, depending on the holding period of the property, and then consolidated for payment.
Heirs Can Now Register Inherited Property under Collective Joint-Ownership with a Certificate of Consent to Transfer
The National Taxation Bureau of Taipei, Ministry of Finance, announced that heirs who have paid their respective shares of estate tax can apply for a “Certificate of Consent to Transfer for Joint Ownership.” This enables them to proceed with the registration of inherited property as joint ownership, preventing the estate from being officially recorded for monitoring by land administration authorities.
Profit-seeking Enterprises Should Pay Attention to Tax Regulations When Scrapping Fixed Assets Before the End of Their Prescribed Service Life
Recently, southern Taiwan was struck by torrential rains. Some profit-seeking enterprises located in low-lying areas suffered from flooding that resulted in the premature destruction or scrapping of machinery and equipment within their factories, even though the assets had not yet reached their prescribed service life. The National Taxation Bureau of the Southern Area, Ministry of Finance, stated that in accordance with Article 57 of the Income Tax Act, enterprises may provide supporting documents to claim the undepreciated book value of the fixed assets as a loss for the year.
Foreign Taxpayers Shall File House and Land Transactions Income Tax Returns by Statutory Deadlines, Regardless of Taxable Income or Loss
The National Taxation Bureau of Taipei, Ministry of Finance states that any individual, whether a Taiwanese or foreign national, who has income or loss derived from transactions of house and land (hereinafter referred to as “property”) acquired on or after January 1, 2016 shall file an individual house and land transactions income tax return in accordance with the Income Tax Act within 30 days from the following day of the day on which the house and land ownership transfer registration is completed.
Biotech and Pharmaceutical Companies Should Be Mindful of the Application Deadline for Profit-Seeking Enterprise Shareholder Investment Tax Credit
The National Taxation Bureau of Taipei, Ministry of Finance states that, in accordance with Paragraph 1, Article 7 of the Act for the Development of Biotech and Pharmaceutical Industry, to encourage the establishment or expansion of biotech and pharmaceutical companies, a profit-seeking enterprise that (i) originally subscribes for or underwrites shares issued by a biotech and pharmaceutical company
Unrealized Foreign Exchange Gains or Losses Are Exempt from Profit-Seeking Enterprise Income Tax
The National Taxation Bureau of Taipei (NTBT), Ministry of Finance, states that, differences between book value and year-end valuation on accounts receivable or accounts payable denominated in foreign currencies are unrealized exchange gains or losses. These unrealized gains or losses shall be excluded from annual Profit-Seeking Enterprise Income Tax Returns.
Taxpayers may provide a third party’s property as guarantee for applying for writing off the registration of disposal prohibition
The National Taxation Bureau of Taipei, Ministry of Finance, states that taxpayers who are prohibited from the disposal of property due to overdue taxes may offer third-party property of equivalent collateral value to the outstanding tax payable. This property will serve as a guarantee when applying to have the disposal prohibition written off.
You Are Cordially Invited to the Hall Chadwick Taiwan Opening Cocktail Reception
We are delighted to announce that in February this year, Yaofeng CPA Firm officially entered into a partnership with the renowned Australian accounting firm Hall Chadwick. We have since established Hall Chadwick Taiwan, combining our local expertise with international resources to provide our clients with more comprehensive professional services.
Profit-seeking Enterprises Should Consider the Shares or Capital Ratios Held by Related Parties when Examining Controlled Foreign Companies Invested in Foreign Low-Tax Jurisdictions
The National Taxation Bureau of Taipei, Ministry of Finance stated that in accordance with Article 43-3 of the Income Tax Act, if a profit-seeking enterprise holds shares or capital of a foreign affiliated enterprise located in a low-tax country or jurisdiction (hereinafter referred to as low-tax jurisdiction) that meets the definition of a controlled foreign company (hereinafter referred to as CFC), and such CFC does not qualify for exemption provisions, the profit-seeking enterprise shall recognize CFC investment income and include it in the taxable income for the current year.
