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Chapter 5 Collection Procedures
Section 3 Tax Return & Payment
Article 35
Except as otherwise prescribed by this Act, a business entity, whether or not it has sales, shall file a bimonthly tax return on a prescribed form for its sales amount and tax payable or overpaid of the preceding two months together with tax deduction and other appropriate documents with the competent tax authority prior to the fifteenth day of the following period. The business tax payable, if any, shall be paid to the government treasury in advance. The receipt for tax paid shall be enclosed with the tax return.
A business entity which applies zero ratings as prescribed in Article 7 of this act may apply to the competent tax authority for filing a monthly tax return for its sales amount and tax payable or overpaid of the preceding month prior to the fifteenth day of the following month. Once approved to file a monthly tax return, the business entity cannot apply for approval to change the filing period within a year.
The business entities mentioned in the preceding two paragraphs, if using uniform invoices, shall further enclose a detailed list of uniform invoices used.
Article 36
A purchaser of services sold by foreign enterprises, institutions, groups or organizations having no fixed place of business within the territory of the R.O.C. shall, prior to the fifteenth day of the period following the period in which the payment is made, compute the business tax based on the payment amount in accordance with the tax rate provided in Article 10 and pay the tax; if the services sold by foreign enterprises are categorized under Article 11, Paragraph 1, the purchaser shall calculate the business tax and pay it in accordance with the tax rate prescribed.However, where the purchaser is a business entity which computes its tax in accordance with the provisions of Section 1 of Chapter 4, and the purchased services are used solely in conducting business in taxable goods or services, such services are exempted from the business tax; where the purchaser is concurrently engaging in business involving tax-exempt goods or services under Article 8, paragraph 1, the proportion payable shall be determined by the Ministry of Finance.
Where a foreign international transport enterprise which has no fixed place of business within the territory of the R.O.C., but has an agent within the territory of the R.O.C., sells services, the agent shall, prior to the fifteenth day of the period following the period in which passengers or goods depart the territory of the R.O.C., compute the business tax based on the sales amount at the tax rate provided in Article 10, file a tax return, and pay the tax according to the preceding Article.
A business entity prescribed in Subparagraph 4, Article 6 of this Act applying for taxation registration in accordance with Article 28-1, shall compute the business tax based on the sales amount at the tax rate provided in Article 10, file a tax return, and pay the tax according to the preceding Article or appoint a tax-filing agent within the territory of the R.O.C. to handle the matter.
Article 36-1
Public and private schools at any level or educational or research institutions purchasing services provided by foreign enterprises, institutions, groups or organizations having no fixed place of business within the territory of the R.O.C. to be used for education, research, or experiment are not required to pay business tax according to the first paragraph of the preceding Article.
The preceding paragraph shall be applicable to cases not currently being assessed or pending final decision at the effective date of the amendment of this Article.
Article 37
The business tax upon the performance by foreign artistic and show enterprises within the territory of the R.O.C. shall be reported and paid under Article 35 to the local competent tax authority where the performance takes place. However, in case the duration of the performance at any one location does not exceed 30 days, tax return and payment shall be filed and made within 15 days after performance is concluded.
Such enterprises shall file and pay business tax before departure if the departure time is prior to the preceding paragraph time limit.
Article 38
The head office and other fixed places of business of a business entity located within the territory of the R.O.C. shall file tax returns and tax payable or overpaid to the local competent tax authority separately.
A business entity which computes its business tax according to Section 1 of Chapter 4 may apply for approval from the Ministry of Finance to combine the sales of goods or services of the head office and all branches and file a consolidated tax return and tax payable or overpaid to the local competent tax authority of the head office.
Article 39
Under the following situations, the amount of overpaid business tax claimed by a business entity shall be refunded after verification by the competent tax authority.
1. The amount of business tax overpaid is on goods or services subject to zero-tax-rate as provided in the provision of Article 7.
2. The business tax overpaid is on fixed assets obtained.
3. The business tax overpaid is by a business entity whose application has been made for cancellation of registration due to merger, business transfer, dissolution or nullification of business.
Overpaid tax resulting from circumstances other than the aforementioned ones may be offset against future business tax payable. Business entities with special situations may apply to obtain approval from the Ministry of Finance to receive tax refunds.
Article 40
For pawnshops and other business entities governed by Article 21 and Article 23, respectively, the competent tax authority shall assess the sales amount and tax payable and issue a payment notice every three months.
For business entities governed by Article 22, the aforementioned procedures shall be done monthly.
The rules in assessing sales amount and tax payable, as mentioned above, shall be prescribed by the Ministry of Finance.
Article 41
The amount of business tax payable on imported goods shall be levied by Customs. With respect to the collection procedures and administrative relief of business tax, the provisions of the Customs Act and the Customs Smuggling Prevention Act shall apply mutatis mutandis.
Article 42
Tax which is to be paid by the taxpayer of his own accord under this Act shall be paid to the government treasury and accompanied by a tax payment slip prepared by the taxpayer.
In accordance with the provisions of this Act, the competent tax authority shall issue a payment notice for payment of assessed business tax, back collection, and surcharges for belated filing or non-filing. The taxpayer shall pay to the government treasury within 10 days starting from the day following the day the payment notice is received by the taxpayer.
In the event that the payment notice is lost, the taxpayer shall apply to the competent tax authority for re-issuance of such notice. The competent tax authority shall re-issue the notice on the next day following the day of receipt of the application. However, the time limit for tax payment shall still commence from the day following the receipt of the first notice, as provided for in the preceding paragraph.
Article 42-1
After receiving the business tax return, the competent tax authority shall, within six months counting from the day following the expiration of the filing period set forth in Article 35, assess the sales amount and the business tax payable or overpaid.
When a taxpayer voluntarily files a supplementary tax return with the competent tax authority and makes a supplementary payment for the amount of tax owed, the competent tax authority shall assess the filing within six months from the day following its receipt of the same.
With respect to cases required to be assessed by the competent tax authority under paragraph 1 above, if there is no supplementary payment of tax due or refund of tax due, the competent tax authority may make a public announcement, specifying that the assessment is made based on the information in the tax return declared by the business entity, in lieu of delivering a notice of the assessed tax amount.
Article 43
In any of the following circumstances, the competent tax authority may assess the sales amount and tax payable of a business entity and levy the delinquent tax based on the data obtained from investigation.
1. Where the sales amount has not been reported more than 30 days beyond the prescribed time limit.
2. Where accounting records have not been kept or an entry has not been made in accounting records within the deadline prescribed by regulation and there has been a failure to make such entry after notification, or where accounting records have been lost, or where the tax authority is refused to check up on accounting records, or where false statements have been made in accounting records.
3. Where business operations have been commenced prior to completion of taxation registration, or where business has been continued after suspension of operation, and sales amount has not been reported in accordance with regulation.
4. Where the sales amount has not been reported or has been under- reported.
5. Where there has been a failure to issue uniform invoices or where the sales amount shown on the uniform invoices has been understated.
6. Where uniform invoices have not been used, although it is required by regulation.
Where the sales amount reported by the business entity is found to be abnormal, the competent tax authority may, by referring to the circumstances of similar business and other related information, determine the sales amount or tax payable and levy the delinquent tax.