2016-06-24 12:28:05

If the compensations or damages received are related to selling of goods or services by a business owner, then GUI should be issued and included in business income tax. However, if the compensation received by a buyer from a seller is not the sales income as stated in Article 16 of the Business Tax Act, the receiver of the compensation is exempt from issuing a GUI (Government Uniform Invoice). The sales income amount as stated in Article 16 of the Business Act is the total amount received by a business owner for the goods sold or services rendered. For example, if a tenant terminates the contract before the end of the lease term, the damage received by the landlord is considered an additional fee on top of the goods sold or the services rendered, like a rental income. Therefore, the landlord should issue a GUI and include the amount in business tax return. However, if the landlord terminates the contract before the end of the lease term, the compensation (such as moving cost, etc) paid to the tenant by the landlord is not considered a sales income amount as stated in Article 16 of the Business Act because the compensation is not obtained through selling of goods or services. Therefore, it is not taxable.