Taiwan MOF Clarifies Business Tax Obligations for Compensation, Penalties Arising From Sales

The Taiwanese Ministry of Finance Nov. 13 clarified business tax obligations for compensation or penalties arising from the sale of goods or services. The clarification includes that: 1) compensation or penalties arising from sales of goods and services are subject to the VAT and non-value added business tax laws, and businesses must issue a uniform invoice and report them; 2) sales of goods or services, and imports of goods within Taiwan, are subject to business tax, with the taxable amount including any additional fees; 3) compensation or penalties collected that didn’t arise from the sale of goods or services aren’t ...