Taiwan's Ministry of Finance has issued a notice to clarify the calculation of income basic tax for the 2026 fiscal year. The income basic tax (IBT) is essentially an alternative minimum tax levied at a rate of 12% for enterprises (20% for individuals). Where basic income exceeds TWD 600,000, the 12% IBT is levied on the excess amount, with the IBT payable if it exceeds the regular income tax calculated for the year.
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Amounts to be Deducted from Basic Income When Calculating Basic Tax …