Taiwan Ministry of Finance Clarifies Timing for Deducting Bad Debt Losses from Court‑Approved Settlements

Taiwan's Ministry of Finance has issued a notice to clarify that when a business waives part of a claim in a settlement due to a debtor's inability to repay, the resulting bad debt loss may be deducted in the year the court formally approves the settlement, provided the enterprise obtains the required court issued supporting documents.

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Businesses That Waive Part of a Claim in a Settlement May Report Bad Debt Losses in the Year the Settlement Is Approved by the Court

The National Taxa…