This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).
The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.
The government of Taiwan announced measures providing a broad range of tax relief in response to the coronavirus (COVID-19) pandemic. Among the tax relief measures are:
Deferral of tax payments or by installments
For Business entities
Waiver of provisional corporate income tax payment for enterprises affected by COVID-19
On 31 July 2020 Taiwan MOF announced a tax ruling which relief affected enterprises for making provisional corporate income tax payments for Year 2020.
The ruling is applicable for provisional corporate income tax payment for Year 2020 which due date fall between January 15, 2020 to June 30, 2021.
The above ruling is applicable for enterprises meeting any one of the following conditions:
Entitle to supportive measures under the relevant COVID-19 special relief and restoration regulations as announced by the relevant central competent authorities; or
Having significant decline in business revenue – for instance, monthly turnover dropping by 15% or more for two consecutive periods since January 2020, comparing to the average in past 6 months or 12 months.
Other relief measures
Apart from the above, the Taiwan government also released other relief policies covering temporary relief on house tax and vehicle license tax during its idle period in light of the current COVID-19 situation; and pro-rata exemption on VAT and amusement tax for taxpayers levied under special assessment basis during its business suspension period.
Corporate income tax 200% deduction on certain salary expenses
As part of the Special Act on COVID-19 Prevention, Relief and Restoration announced on February 25, 2020 to alleviate the social and economic impact, Taiwan MOF also announced a tax ruling on March 10, 2020 to provide guidance on how companies can deduct additional salaries expenses for employees who are affected by COVID-19.
The Special Act is applicable from January 15, 2020 to June 30, 2021
Salaries, wages, service pay and other regular compensations paid to employees during their
statutory leave period falling under any one of the following reasons: