Dec 03
According to Taiwan tax law, input tax incurred by purchasing passenger car for personal use shall not be deducted from output tax by a business entity. The term “passenger car for personal use” refers to a passenger automobile having not more than nine seats and which is not used for the sale of goods or rendering of services.
If a business entity has used such input tax for deduction from output tax while filing VAT return, the entity must file supplementary report with tax authority and pay deferred input tax. Where the amount of input tax has been falsely reported, the taxpayer shall be pursued for payment of taxes and be fined from one to ten times of the amount of tax evaded. In addition, his business may be suspended.
January 17th, 2009 at 12:46 pm
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