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14.2. Type of Assessment

Enterprises are required to make a self-assessment of their tax liability and file both a provisional and annual return. All Taiwan resident enterprises and the fixed place of business or agent of non-residents are required to self-assess and file returns. Non-residents with no fixed place of business or agent in Taiwan are not required to file any returns as their tax owed must be withheld by the relevant payer in Taiwan.

Tax payments are made in two installments. The first is when the provisional return is made. An enterprise will be required to pay provisional tax equal to 50% of the previous year's tax liability. Subject to approval, an enterprise can instead pay provisional tax based on the first 6 months of the current year if they file a blue return or have a CPA certify their provisional return.

The second installment is adjusted with the provisional tax paid and made when the annual tax return is filed. After filing the annual return, the tax authorities may make a revised assessment and issue notice to the taxpayer on the balance of the tax payable. Additional information on reassessment and investigation/audit can be found in Sec. 14.4.