Minxiong Office, National Taxation Bureau of the Southern Area, Ministry of Finance recently received a call about whether the medical expenses or compensation paid by the profit-seeking enterprise to the victim due to a car accident could be declared as expenses. Minxiong Office indicated that the aforesaid expenses which met the requirements of Item 5, Subparagraph 2, Article 103 of the Regulations Governing Assessment of Profit-seeking Enterprise Income Tax could be declared as other expenses or losses.
Minxiong Office explained that after the profit-seeking enterprise had paid the medical expenses, funeral expenses, pension or compensation to the victim or his/her relatives due to a car accident caused by the company-owned vehicle for business use and had obtained the evidential documents required, the expenses or compensation without insurance coverage could be recognized as other expenses or losses. Minxiong Office would like to kindly remind profit-seeking enterprises to comply with tax laws and related regulations to obtain evidential documents when claiming expenses and losses to maintain their rights and interests.
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Press Release Contact: Mr. Chang, Head of Profit-seeking Enterprise Income Tax and Estate & Gift Tax Section
TEL: 05-2062141 ext.100