Taiwan — GBRT – indirect tax guide

Taiwan — GBRT – indirect tax guide

Explore the requirements and rules that apply to indirect taxes in Taiwan — GBRT.

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Type of indirect tax:

Gross business receipts tax (GBRT).

Standard rate:

Financial institutions: 2 percent for core business revenue (increased to 5 percent for banks and insurance companies’ core business revenue), 1 percent for reinsurance premiums of insurance enterprises and 5 percent for non-core business revenue.

Special food and beverage vendors: 15 percent or 25 percent.

Small businesses: 1 percent or 0.1 percent.

What supplies are liable to the standard rate?

The sale of goods and services in Taiwan from financial institutions, special food and beverage vendors and small businesses.

Are there any reduced rates, zero- rates or exemptions and if so, what do they apply to?

Generally, not applicable.

VAT/GST registration

Who is required to register and what is the threshold?

The head office of a business entity and its branches with fixed places of business in Taiwan must each register for GBRT before operating.

Is voluntary registration possible?


Is voluntary registration available for an overseas company or a fiscal representative?


VAT/GST compliance

What is the typical frequency of returns?

Typically, bimonthly.

VAT/GST recovery

Are there any items that a registered business cannot recover GBRT on?

Generally, not applicable.

Can an overseas company recover GBRT if it is not registered?


How long does it typically take to obtain a GBRT refund following a return filing?

Generally, not applicable.


Are there specific requirements for the content of invoices to be considered valid for GBRT purposes?

Yes, invoices must contain the buyer’s name; buyer’s business number; date; details of transaction; quantity; unit price; item subtotal; selling amount; tax category and amount; and grand total.

Special indirect tax rules

Does a reverse charge or indirect tax withholding mechanism apply?

Yes, the GBRT on services supplied by a foreign entity who does not have a VAT registration in Taiwan should be accounted for by the buyer. The buyer should report such purchase and calculate the related GBRT on its GBRT return.


Is it possible to apply for formal or informal advance rulings from the tax authority?


Other indirect taxes

Are there any other indirect taxes that apply in the jurisdiction?

Other indirect taxes include the following:

  • commodity tax
  • tobacco and liquor tax
  • amusement tax
  • special goods and services tax (luxury tax)
  • customs duty
  • stamp duty.


Willis Yeh
KPMG in Taiwan
T: +886 2 8101 6666
E: wyeh@kpmg.com.tw

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