2014-08-01 13:19:23

Businesses that have been in operation for less than a year should convert the actual business income to annual income using the ration of the days in operation to days in a year, in order to calculate the annual business income tax amount, which is then converted to the actual business income tax payable using the same ratio used. Businesses that have been in operation for less than a month should use one month to calculate the tax payable. The above-mentioned “businesses in operation for less than a year” mean business enterprises that are newly registered or closed temporarily or permanently in the middle of a fiscal year. Illustration: Company start on May 1, 2014 and close book on Dec 31, 2014. The Net Income Before Income Tax (NIBIT) is NTD100,000. The Business Income Tax payable for 2014 is NTD17,000. Average NIBIT per month : 100,000 / 8 = 12,500 Annual NIBIT: 12,500 x 12 = 150,000 Annual Business Income Tax : 150,000 x 17% = 25,500 Annual Business Income Tax payable : ( 25,500 /12 ) x 8 =17,000