Uniform Invoices Shall be Issued for the Sales of Fixed Assets Exceeding Their Service Lives to Report Business Taxes!
The National Taxation Bureau of Kaohsiung, Ministry of Finance, stated that uniform invoices shall be issued for business taxes even though the fixed assets exceeding their service lives are sold cheap.
The Bureau gave an example. A business entity has not filed for the profit-seeking enterprise income tax return for the current year since its close of business until the termination of business. Prior to the termination of business, there was a fixed asset (a truck) listed in the balance sheet and property list of the latest Profit-seeking Enterprise Income Tax return. The vehicle has exceeded the service life from the year of acquisition to termination of business; however, the business entity has not filed for the disposal, issued an invoice, and paid the business tax. After the Bureau reviewed the vehicle registration data, it was found that the vehicle had been transferred to other person’s name prior to the termination of business, and the transferee had been requested to provide the remittance voucher for the proceeds of the sales. The business entity has not issued the invoice and has evaded reporting the business tax. In accordance with the provisions of Subparagraph 3, Paragraph 1, Article 51 of the Value-Added and Non-Value-Added Business Tax Act and Article 44 of the Tax Collection Act, the business entity shall pay the tax and receive a fine.
The Bureau further reminded that when a profit-seeking enterprise is closed due to poor management, even though the residual carrying amounts of its fixed assets can be minimal for having exceeding their service lives, the enterprise shall apply for the purchase of uniform invoices from the taxing authority to issue uniform invoices and pay the business tax for any sales of these assets.
Contact: Miss Lee, the Revenue Officer of the First Legal Affairs Division