Taiwan MOF Clarifies CFC Loss Deduction Rules for Profit-Making Enterprises

The Taiwanese Ministry of Finance Nov. 13 clarified the controlled foreign corporation (CFC) loss reporting requirements for profit-making enterprises. The clarification states that: 1) profit-making enterprises declaring CFC losses must submit their CFC financial statements and supporting documents within the annual income tax settlement period; 2) approved losses from the previous 10 years are deductible from CFC profits; 3) taxpayers must complete required documents in the prescribed format to qualify for loss deduction; 4) enterprises may apply for a one-time extension of up to six months, by separate application before the filing deadline expires or by checking the extension box ...