The National Taxation Bureau of Taipei, Ministry of Finance(here-inafter referred to as NTBT)expressed that where under-reported or omitted income were found in a profit-seeking enterprise income tax return, overdue interest would be charged and penalty would be waived only when the enterprise file an amended tax return and make tax payment before the case is brought about by an informant, under investigation by an investigator appointed by the tax collection authorities or the Ministry of Finance (hereinafter referred to as MOF).
The NTBT explained that the declaration period of the profit-seeking enterprise income tax return for the taxable year 2018 and the undistributed retained earnings tax return for the taxable year 2017 was due on May 31, 2019. The NTBT urged profit-seeking enterprises to reconfirm their declarations especially in the following sections: the completion and disclosure of Income Basic Tax section (page 2 of the profit-seeking enterprise income tax return form) and the calculation of the difference between basic tax and regular tax and tax payment.
The NTBT further explained that in accordance with Article 48-1of the Tax Collection Act, where under-reported or omitted income were found by the enterprise and amended tax return filed before it is brought about by an informant, under investigation by an investigator appointed by the tax collection authorities or the MOF, penalty would be waived and overdue interest would be charged upon the amended tax payable. Interest of the tax payable would be imposed from the first day after the payment deadline until payment date. It would be calculated on a daily basis at the fixed interest rate of postal savings one-year term deposit on the original deadline for the tax payment.
The NTBT reminded that to protect rights, profit-seeking enterprises shall file amended tax returns, make additional tax and interest payments as soon as under-reported or omitted income were found.
(Contact: Mr. Hu, Revenue Assessor of First Examination Division; 886-2- 2311-3711 Ext. 1223)