Tax Levied on Transfer of Vehicle

According to Value-Added and Non-Value-Added Business Tax Act, business tax, in the form of value-added or non-value-added, shall be levied on the sale of goods or services within the territory of the Republic of China (R.O.C.) and the import of goods. Input tax of vehicle purchased by an enterprise must not be deducted from output tax. When the vehicle is transferred, uniform invoice shall be issued to file business income tax return. A business entity failed to issue uniform invoices or understated sales amount on uniform invoices, in addition to paying the tax calculated on the basis of the understated or omitted sales amount at the prescribed tax rate, shall be fined 1 to 10 times of the amount of the tax evaded. Business entities found to have committed such violation 3 times within a one-year period shall be suspended from business operation.