Taiwan MOF Clarifies Business Tax Reporting, Payment Obligations for Cross-Border Purchases of Foreign Cloud Services

The Taiwanese Ministry of Finance Sept. 11 clarified the business tax reporting and payment obligations for cross-border purchases of foreign cloud services, including cloud storage and generative artificial intelligence (AI), by specified organizations. The clarification includes that: 1) domestic buyers must report and pay business tax for foreign cloud services purchased from a nonresident seller without a fixed place of business in Taiwan unless they are an individual, a specialized business calculating the tax a certain way, or sell specified services to schools or research institutions; 2) agencies that buy cloud services from a foreign company must report and pay ...