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Taiwan: Income tax treatment, revenue received by foreign e-services providers

Taiwan: Income tax treatment, by e-services providers

The Ministry of Finance—following implementation of a value added tax (VAT) regime applicable with respect to e-services provided by foreign e-services providers—released rules for the income tax treatment of revenue received by foreign e-services providers. Similar to the VAT regime, the income tax regime focuses on the revenue derived by foreign e-services providers from e-services provided to onshore Taiwan customers.


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The income tax regime focuses, in part, on:

  • The types of transactions (e.g., sales of e-services and services used within a specified physical location in Taiwan)
  • The determination and calculation of Taiwan-sourced income (foreign entities being subject to Taiwan income tax only on income that is Taiwan-sourced)
  • The effective date of 1 January 2017, with the first self-reporting required during the month of May 2018 and before 31 May 2018


Read a January 2018 report [PDF 282 KB] prepared by the KPMG member firm in Taiwan

Read a 2018 report [PDF 102 KB] prepared by KPMG’s Global Indirect Tax Services

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