Taiwan Tax Agency Clarifies Corporate Income Tax Deduction Rules for Substantial Investments Using Retained Earnings

The Taiwanese Ministry of Finance March 10 clarified corporate income tax deduction rules for substantial investments using retained earnings. The clarification includes that:1) a for-profit company or limited partnership applying the deduction must repay the deducted or refunded tax if, within three years, as specified, it changes to non-business or non-self-production purposes the use of buildings, hardware, software equipment, or technology purchased with current year surplus, or lends, leases, resells, or returns them; 2) interest applies daily until repayment, from the day after the retained earnings reporting period expires, or the day after receiving the tax refund, calculated at the ...