Tax Year

The tax year in Taiwan is the calendar year, January 1st to December 31st. An enterprise can use alternate fiscal year if approved by the Taiwan tax authorities.

Deadlines for Filing and other Important Compliance Events

The following chart summarizes the obligations of taxpayers with respect to payment dates and deadlines in Taiwan.

*Not all private enterprises need to have certified financial statements, the criteria are provided further below

Tax Return Filing

Annual Tax Return

Enterprises are required to file the annual tax return generally within 5 months of the end of the tax year.

Provisional Tax Return

The provisional tax return is generally due in September of each year. Certain enterprises are not required to file provisional tax returns, including:

• A non-resident with no fixed place of business in Taiwan
• Approved small-scale enterprises
• Approved tax exempt businesses
• A business taxed on deemed profit subject to withholding tax

Tax Return Types

Taiwan has two different types of return forms. Enterprises will be required to use one or the other based on certain conditions. The return types are:

• A Blue return - a special income tax return type, which enterprise can use if approved by the Taiwan tax authorities based on the enterprises system of internal controls and have historically good record keeping and filing
• An ordinary return - used by enterprises not qualifying for blue returns
• The blue return is essentially a pre-approved return that will be less scrutinized and less likely to be subject to additional assessment.

Indirect Tax Reporting

Depending on the nature of the business, indirect taxes in the form of VAT or GBRT will be imposed and must be reported by the 15th of each month.

Certified Financial Statements

Private enterprises’ financial statements are required to be independently audited and certified by a certified public accountant in Taiwan if their paid-in capital is TWD 30 million or more. This is typically done in April each year, prior to annual tax return filing.

Public enterprises’ financial statements are also required to be independently audited and certified by a certified public accountant in Taiwan, although more frequently. Annual financial statements must be audited within 4 month of the end of the fiscal year, semi-annual financial statements must be audited within 2 months of the end of each fiscal half-year, and 1st and 3rd quarterly reports must be reviewed within 30 days of the end of the 1st and 3rd quarter.

In addition to the TWD 30 million paid-in capital threshold and public enterprises, the following are required to have their financial statements audited:

• Financial enterprises such as banks, insurance companies, enterprises engaged in securities and futures trading, etc.
• Enterprises filing consolidated income tax return in accordance with the Business Mergers and Acquisitions Act or the Financial Holding Company Act
• Enterprises whose annual income exceeds TWD 100 million.

Enterprises that have their financials audited will receive the benefits of filing a blue tax return, such as utilization of losses carried forward. Auditing standards and procedures in Taiwan are similar to the International Standards on Auditing.

Availability of E-Filings

Taxpayers are allowed to file their returns electronically through software provided by their tax office.