Taiwan MOF Clarifies Estimated Income Tax Calculation for Profit-Seeking Enterprises Given CFC Rules

The Taiwanese Ministry of Finance July 6 clarified estimated income tax calculation rules for profit-seeking enterprises in light of the controlled foreign company (CFC) regime implemented in 2023. The explanation clarifies that: 1) the implementation of the CFC rules doesn’t affect these enterprises when filing estimated business tax declarations in 2023; 2) profit seeking enterprises pay half the tax payable in the previous year’s settlement; 3) specified corporate organizations, cooperatives, and medical associations, can elect to make the estimated payment based on the total operating income of the first six months of the current year; 4) enterprises electing this calculation ...