It is possible to defer the payment of Annual Corporate Income Tax
2024-05-28 18:36:11
Annual Income Tax for the year 2023 is due on May 31, 2024.
For Companies Facing Financial Difficulties, it is possible to defer the payment of Annual Corporate Income Tax
According to Article 26 of the Income Tax Act of Taiwan, companies that are facing financial difficulties due to objective circumstances may be eligible to defer payment of their income tax. This includes situations where the company's net business income for four consecutive months is more than 30% lower than that of the same period in the previous year.
To be eligible for deferred payment, companies must meet the following criteria:
The company must be facing financial difficulties due to objective circumstances.
The company must have filed a timely and accurate income tax return.
The company must have a good tax compliance history.
To apply for deferred payment, companies must submit an application to the tax authority along with supporting documentation. The supporting documentation may include financial statements, bank statements, and other evidence of financial hardship.
If the tax authority approves the application, the company may be allowed to pay the income tax in installments over a period of up to 36 months. The interest rate for deferred payments is based on the one-year fixed rate for postal savings deposits as of January 1 of each year.
The number of installments allowed depends on the amount of tax due:
For tax liabilities less than NT$200,000, 2 to 6 installments may be allowed.
For tax liabilities between NT$200,000 and NT$1 million, 2 to 12 installments may be allowed.
For tax liabilities between NT$1 million and NT$5 million, 2 to 24 installments may be allowed.
For tax liabilities over NT$5 million, 2 to 36 installments may be allowed.
The tax authority may require the company to provide a security deposit or other collateral to guarantee the payment of the tax.
The company must continue to file timely and accurate income tax returns during the deferred payment period.
The company must make all installment payments on time. If the company fails to make a payment, the tax authority may revoke the deferred payment arrangement and demand full payment of the remaining tax balance.
According to Article 26 of the Income Tax Act of Taiwan, companies that are facing financial difficulties due to objective circumstances may be eligible to defer payment of their income tax. This includes situations where the company's net business income for four consecutive months is more than 30% lower than that of the same period in the previous year.
To be eligible for deferred payment, companies must meet the following criteria:
The company must be facing financial difficulties due to objective circumstances.
The company must have filed a timely and accurate income tax return.
The company must have a good tax compliance history.
To apply for deferred payment, companies must submit an application to the tax authority along with supporting documentation. The supporting documentation may include financial statements, bank statements, and other evidence of financial hardship.
If the tax authority approves the application, the company may be allowed to pay the income tax in installments over a period of up to 36 months. The interest rate for deferred payments is based on the one-year fixed rate for postal savings deposits as of January 1 of each year.
The number of installments allowed depends on the amount of tax due:
For tax liabilities less than NT$200,000, 2 to 6 installments may be allowed.
For tax liabilities between NT$200,000 and NT$1 million, 2 to 12 installments may be allowed.
For tax liabilities between NT$1 million and NT$5 million, 2 to 24 installments may be allowed.
For tax liabilities over NT$5 million, 2 to 36 installments may be allowed.
The tax authority may require the company to provide a security deposit or other collateral to guarantee the payment of the tax.
The company must continue to file timely and accurate income tax returns during the deferred payment period.
The company must make all installment payments on time. If the company fails to make a payment, the tax authority may revoke the deferred payment arrangement and demand full payment of the remaining tax balance.