Taiwan MOF Clarifies Tax Treatment of Commission Expenses, Income

The Taiwanese Ministry of Finance Oct. 14 clarified that individuals providing brokerage services and earning commission income through sale and purchase of real estate are subject to taxation. The clarification also explains that: 1) the buyer and the seller or any of the parties can calculate the commission amount based on the purchase price; 2) 20 percent of the commission income would be deducted as an expense for the broker if the relevant costs are not prompted and supporting documents for the deduction are not presented to the tax authority; and 3) the balance of the commission income, excluding expenses, ...