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Apr 14

The global outbreak of COVID-19 has created significant impacts of to individuals or business entities. Taiwan Ministry of Finance has offered some supporting measures to taxpayers, in terms of tax payment and filing. The below is a summary of the measures prepared by Good Earth CPA.

Supporting Measures provided by the Ministry of Finance for COVID-19

A compilation of a few available supporting measures provided by the Ministry of Finance


1. 因疫情隔離政府會主動延長申報及繳稅期限

納稅義務人因嚴重特殊傳染性肺炎而接受隔離治療、居家隔離、居家檢疫、集中隔離或集中檢疫等事由影響,無法於法定期間內完成申報繳納稅捐,本部主動公告延長申報及繳納期限。
Extension for Tax Payment & Filing

Due to severe special infectious pneumonia, taxpayers, who are subject to isolation treatment, home quarantine or centralized quarantine, accordingly, those taxpayers might not be able to prepare and file tax return or pay tax due within the statutory period. Ministry of Finance allows the following extensions.

Tax Category Tax Period Due Date Extension Date
Income Tax 2019 Individual Income Tax May 31, 2020 June 30, 2020
2019 Business Income tax May 31, 2020 June 30, 2020
Income Tax Withheld (Tax Resident) in Feb, 2020 March 10, 2020 March 31, 2020
April 10, 2020 April 30, 2020
May 10, 2020 June 1, 2020
Income Tax Withheld (Non tax Resident) before Jun 1, 2020 Within 10 days after the tax is withheld Within 20 days after the tax is withheld
Value Added Tax March April 15, 2020 April 30, 2020
March and April May 15, 2020 June 1, 2020
For Small Scale Business who pays VAT Quarterly, the first Quarter 2020 May 10, 2020 June 1, 2020
For Small Scale Business who pays by Month April 10, 2020 April 30, 2020
May 10, 2020 June 1, 2020
Commodity Tax, Tobacco and Alcohol Tax and Luxury Tax March April 15, 2020 April 30, 2020
April May 15, 2020 June 1, 2020
Automobile License Tax For the Year 2020 April 30, 2020 June 1, 2020
Property Tax For the Year 2020 June 1, 2020 June 30, 2020

Remarks
展延申報繳納期限屆滿時,仍接受隔離治療者,其申報繳納期限自隔離治療結束之次日起展延20日
When the deadline of the extension expires, the taxpayers are still subject to isolation treatment, home quarantine or centralized quarantine. The declaration and payment shall be extended for 20 days from the day after the end of isolation treatment.

108年度綜所稅將提前退稅
2. 民眾如果以網路申報或於109年5月11日前以人工申報108年度綜所稅,108年度綜所稅第一批退稅案件,將提前一個月於109年6月30日退稅。
If the individual income tax return is filed online or before May 11, 2020. The first batch of Individual Income tax refund for the year of 2019 will be on June 30, 2020, which is one month earlier than normal date of refund.

3. 自109.4.1至109.9.30期間,中央銀行實施調降利率措施
(1)自用住宅貸款:
貸款額度低於1,000萬元部分,加計央行降息1碼及公股銀行減收1碼,共減2碼(0.5%)。
(2)消費性貸款:
信用卡、信貸及車貸等住宅貸款外之貸款,於各行歸戶後1,000萬元以內部分,共減3碼(0.75%)。

Taiwan Central Bank cuts interest rates, interest rate reduction measures for the period from April 1, 2020 to September 30, 2020.
(1) Self-use residential loan:
The amount of the loan amount which is less than TWD10 million, Central Bank will cut interest rates by 0.25% and the government owned bank will cut the rate 0.25%, total interest rate reduced is 0.5%.
(2) Consumer loans:
Loans other than residential loans such as credit cards, credits, and car loans will be reduced by 0.75%, within TWD10 million.

Loan Category Loan Amount More Than TWD10,000,000 Loan Amount Less Than TWD10,000,000
Self-use residential loan N/A Interest Rate reduced by 0.5%
Consumer loans N/A Interest Rate reduced by 0.75%

國有不動產租金得申請展延繳納
4. 嚴重特殊傳染性肺炎防疫期間,國有不動產合法使用人有緩繳租金(含地上權地租、委託經營經營權利金)需求者,109年度按契約約定應繳納租金,得申請展延繳納期限至109年12月底前繳清,期間免計收違約金及遲延利息。
Rental payment for the State-owned property or land can be applied for extension.
During the epidemic prevention period, the rental payment for State-owned real estate for the year of 2020 can apply for the extension of the payment period till the end of December 2020, and all the interest incurred and penalty for overdue will be exempted.

5. 申請延期或分期繳納稅款
納稅義務人受嚴重特殊傳染性肺炎疫情影響且不能於規定繳納期間繳清稅捐者,可向稅捐稽徵機關申請延期或分期繳納稅款。
(1) 延期:延長繳納期限1個月至12個月
(2) 分期:分2期至36期(每期以1個月計算)
Taxpayers infected by Covid-19 is allowed to apply for tax payment extension or payment in installments.
(1) Extension: extend the payment period from 1 month to 12 months
(2) Installments: from 2 installment payments to 36 payments (each installment is calculated in 1 month)

6. 藥用酒精原料及口罩關稅調降減免防疫期間藥用酒精原料關稅由20%調降為10%,口罩由7.5%調降至免稅,為期3個月(實施日期自109年2月27日起至109年5月26日止)。
Import Duty Discount or Free for Medicinal Alcohol or Mask.
From February 27, 2020 to May 26, 2020, the import duty for medicinal alcohol & raw materials was reduced from 20% to 10%, and the Mask is reduced from 7.5% to duty-free.

Product Normal Duty Rate Discounted Duty Rate
Medicinal Alcohol & Raw Materials 20% 10%
Mask 7.50% 0%

7. 健保特約藥局接受政府委託代售配銷之防疫酒精免營業稅
The Sales of Rubbing Alcohol (Isopropyl alcohol or Ethanol) or Mask is free of VAT. 
The Pharmacy, who accepts the commission of the government for the epidemic prevention, the sale of Rubbing Alcohol and Mask are free of Value Added Tax and exempt from issuing Government Uniform Invoices.

8. 健保特約藥局辦理代售口罩自政府取得之款項免徵所得稅
The Sales Revenue of Mask is exempt from Income Tax.
The government subsidy received by the Pharmacy, who accepts the commission of the government for the epidemic prevention, for the sales revenue of mask is exempt from Income Tax.

9.救濟或防疫物資免徵進口稅
(1) 救濟事業之政府機構、公益、慈善團體進口或受贈之物資,進口後無償供公益慈善救濟之用,依救濟物資進口免稅辦法規定,具備救濟物資進口免稅申請書及相關文件,向衛生福利部社會救助及社工司申請進口免稅,經衛生福利部核明轉送財政部核辦,經財政部核可後,免徵進口稅費。
(2) 捐贈防疫物資給政府
本國或外國個人或企業、團體、組織,以自己名義報關進口防疫物資,捐贈我政府機關者,經衛生福利部食品藥物管理署證明係供防疫之用者,免徵進口稅費。

Duty Free for the imported materials or goods which is donated for the purpose of the epidemic prevention.
(1) The epidemic prevention materials, imported or donated by government agencies, public welfare organizations, and charitable organizations and be used for epidemic prevention are free of import duty.
(2) Import and donate the epidemic prevention materials or goods to the government
National or foreign individuals or enterprises, groups, and organizations, who declare customs imported anti-epidemic materials in their own names, donate to our government agencies, and are certified by the Food and Drug Administration of the Ministry of Health and Welfare for epidemic prevention, are exempted from import taxes and fees.

10. 當年度如為虧損可依所得稅法第39條規定於以後10年內盈虧互抵營利事業因疫情影響造成營業收入減少,其營利事業所得稅亦將減少,當年度如為虧損,可依所得稅法第39條規定於以後10年內盈虧互抵 ,減少相關年度應納稅額。
The loss incurred during the year 2020 could be carried forward in the next 10 years.
For a business entity, the loss incurred due to the epidemic, the loss could be carried forward in the next 10 years in accordance with Article 39 of the Income Tax Act.

11. 防疫隔離假之薪資之200%,可自2020年度所得額中減除
嚴重特殊傳染性肺炎防治及紓困振興特別條例第4條,就機關(構)、事業單位、學校、法人、團體給付其員工依規定申請防疫隔離假或依中央流行疫情指揮中心所為應變處置指示而得請假期間之薪資,提供得就該給付薪資金額之200%,自申報當年度所得稅之所得額中減除之租稅措施。
200% of Salary paid for epidemic prevention or quarantine leave is deductible for Business Income Tax purpose. 
A for-profit or non-for-profit entity, who pays its employees for epidemic prevention or quarantine leave, according to regulations or the emergency instructions of the Central Epidemic Command Center, is entitled to deduct 200% of the amount of the paid salary when declare its 2020 Business Income Tax return.

12. 小規模營業人營業稅可以調減
各地區國稅局於中央流行疫情指揮中心成立期間,主動依規定視營業人實際營業情形,覈實調減其查定銷售額及營業稅額。
The Value Added Tax of Small-Scale Business, with monthly revenue less than TWD200,000, could be reduced.
During the establishment of the Central Epidemic Command Center, the regional taxation bureaus took the initiative to verify the reduction of their sales and to reduce Value Added Tax according to the actual business conditions. The VAT rate for Small-Scale Business is 1%.

(A compilation of a few available supporting measures, which we think are practical, provided by the Ministry of Finance)

written by Good Earth


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