Taiwan MOF Explains Non-Deductibility of Input VAT for Expenses Incurred for Shareholder Gifts

The Taiwanese Ministry of Finance May 25 explained the deduction disallowance for input VAT on expenses incurred on gifts for shareholders. The explanation clarifies that companies gifting souvenirs to shareholders during shareholders’ meetings can’t deduct the input tax paid on the gifts, since they’re not business expenses. If a company declares a deduction for shareholders’ gifts, it can automatically make a supplementary report and pay the evaded taxes for a penalty and interest waiver. [Taiwan, Ministry of Finance, 05/25/22]

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