Proof of Business Tax Return

Proof of Business Tax Return

 

This article aims to introduce the issuance of uniform invoice in practice. The introduction as below:

 

1. The expenditure items required to state on the tax withholding form and submit to Taxation Bureau
2. Input credit and proof for accounting of business tax
3. Proof for accounting of business tax but no input credit incurred

 

1. The following items shall be proceeded tax withholding and stated on the tax withholding form to Taxation Bureau:

 

(a) The withholding shall be proceeded as the wage income tax withholding table in the basis of monthly wages.

(b) Part-time workers shall be withheld the amount of tax in 5% and sign on the backside of payroll and affidavit.

(c) The amount of commission more than TWD20,000 or equivalent shall be withheld the amount of tax in 10%.

(d) The amount of rentals more than TWD20,000 or equivalent shall be withheld the amount of tax in 10% and be attached the rental contract and house tax bill in photocopy.

(e) Income from professional practice (such as accountants and lawyers) more than TWD20,000 or equivalent shall be withheld the amount of tax in 10%.

(f) The amount of withholding tax payable less than TWD2,000 (in the basis of individual employee) is exempted from withholding of tax.

(g) Finishing the payment bill and paying the amount of withholding tax to the bank prior to 10th in each month.

(h) The photocopy of frontside and backside of identity card of the withholding subject shall be obtained for finishing the tax withholding form at the end of each year smoothly.

Important Notice:

(1) The next listed proofs shall be the uniform invoice in triplicate form with the company’s uniform invoice number, uniform invoice issued from a cashier, or receipt.

(2) The abovementioned items are solely suitable for withholding. In the circumstance of payment to foreign individuals, companies, or others, please feel free to contact our firm to understand furtherly about the withholding rate and deadline of tax return. If the amount of withholding fails to pay, it is required to recover the amount of payment pursuant to laws and surcharge for overdue payment, interest, and fines. It shall be bear in mind to proceed the withholding in accordance with the related laws.

(3) In the condition of payment to foreigner who stays in Taiwan less than 183 days, the rate of withholding shall be 20%. The fact shall be reported to Taxation Bureau in 10 days from the date of payment.

(4) The payment per bill less than TWD20,000 and within the validity is possible to be paid at convenient stores. The payment per bill more than TWD20,000 and expired shall be paid at the banks reversely.

2. Input credit and proof for accounting of business tax and business income tax

 

The expenditures shall be related with the businesses or operation of company. The category may be as below:

(1) Purchase (material), project payment, advance payment, instalment payment, deposit invoice or return discount certificate.

(2) Invoices for the purchase of hardware, tools, books and magazines, equipment, trucks, passenger and cargo vehicles, locomotives, decoration works, air-conditioning works, small-tonnage air conditioners, telephones, computer hardware and software, office supplies, and other fixed assets. (Air conditioners in short tons should not be equipped in large amounts; furniture tables and chairs should be written as office desks and chairs on the invoice; the invoices of Aimai, Carrefour and RT-Mart should be attached with a detailed list of items and all listed must be deductible. Please check out separately for supplies.)

(3) Invoices for car refuelling and repairs. (No license plate number required)

(4) Invoices for the rental of accommodation and rental equipment for domestic business trips with a business trip report.

(5) Invoice for participation in external training fees.

(6) Get invoices for commission expenses, interest expenses, and freight charges.

(7) Newspaper, magazine, phone book product advertisement receipts.

(8) Receipts for water, electricity and gas charges applied in the name of the company.

(9) Domestic air ticket deduction coupon (must be an employee)

(10) Others. (Please contact the office to find out if the deduction is possible)

 

3. Proof for accounting of business tax and business income tax but no input credit incurred

 

(1) Invoices for purchasing passenger cars (must be registered under the company name), refrigerators, TVs, stereos, gas stoves, water dispensers, water heaters and other employee benefits.

(2) Invoices or receipts for light meals, gifts, and department stores. (Limited, approximately 0.5% of revenue)

(3) Receipts for personnel advertisements, building management fees; receipts for parking, crossing bridges, and passing; domestic passenger and train ticket vouchers.

(4) Proof of stamp purchase; government tax and fee payment letter.

(5) Receipts of premiums for group life insurance, property insurance, fire insurance, and labour and health insurance.

(6) Receipts for bank interest and handling fees; receipts for subscriptions to newspapers and magazines.

(7) Individual temporary trade surplus declaration. (Such as direct sellers, unregistered personal transactions)

(8) Receipts of small shops (small-scale profit-seeking enterprises). (The maximum amount is 3% of operating expenses and manufacturing expenses)

(9) Receipts for the collection and transfer of foreign air tickets, group fees and agency fees issued by the travel agency, or the ticket purchase certificate issued by the airline, together with the ticket stub, fill out a travel expense report and record it as “Travel Expenses”. (Travelers must be company employees)

(10) Others. (Please contact Kaizen to confirm the availability.)