Corporate Income Tax
In taiwan, the formal name of corporate income tax is “Profit-seeking Enterprise Income Tax.” And companies in Taiwan are subject to income tax on their worldwide income.
Taxable income
Taxable income is defined as net income after the deduction of costs and expenses.
Rate
The corporate income tax rate is 20%.
Loss carry forward
Assessed loss in a year may be carried forward for 10 years provided the company files the annual corporate income tax return that has been certified by a CPA both in the year of loss happened and utilized.
Tax year
Generally the tax year is the calendar year. But companies can also adopt a different fiscal year by obtaining prior approval from the tax office.
Filing and payment
The payment of annual Income tax consists of two parts:
1. Provisional income tax
A calendar-year company must pay provisional income tax in September at 50% of the preceding years’s tax liability.
2. Final income tax
The final return must be filed before 31 May following the end of the fiscal year and include the payment of any tax liability in addition to the provisional income tax in September.