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Chapter 5 Collection Procedures
Section 1 Registration of Tax Payer
Article 28
The head office of a business entity and its branches with fixed places of business shall each file an application for taxation registration separately with the competent tax authority before commencement of business.
Article 28-1
A business entity prescribed in Subparagraph 4, Article 6 of this Act with annual sales amount exceeding certain criteria, shall apply for taxation registration with the competent tax authority or appoint an individual residing within the territory of the R.O.C. or an enterprise, institution, group, or organization with a fixed place of business as a tax-filing agent to handle the taxation registration.
Where any foreign enterprise, institution, group, or organization appoints a tax-filing agent in accordance with the preceding paragraph, it shall apply for approval from the local competent tax authority of the tax-filing agent. In case of a change of agent, it shall also file for approval for such an event.
The certain criteria of annual sales amount referred to in paragraph 1 above shall be prescribed by the Ministry of Finance.
Article 29
Business entities engaged solely in the business of the sale of exempt goods or services, as provided in Article 8, paragraph 1, subparagraphs 2 to 5, 8, 12 to 15, 17 to 20, and 31 herein and government entities of all levels may be exempted from applying for taxation registration.
Article 30
In the case that there is any change in matters registered under Article 28 and 28-1, or there is a merger, ownership transfer, dissolution, or nullification of business of a business entity, an application for modification of registration or cancellation of registration shall be filed with the competent tax authority within fifteen days after the occurrence of such an event.
An application by a business entity under the preceding paragraph, for modification of registration or cancellation of registration, may only take effect upon the payment in full of taxes, or upon the provision of security, provided, however, that this requirement shall not apply in the case of application for modification of registration due to merger, increase of capital, or a change in business address or scope of business.
Article 30-1
The particulars of taxation registration, procedures for applying for taxation registration or modification or cancellation of registration, documents required to be submitted, causes for revocation or nullification of registration, and provisions for other compliance matters shall be prescribed by the Ministry of Finance.
Article 31
Prior to the temporary suspension of business or a resumption of business after the suspension, the business entity shall file for approval and recordation with the competent tax authority for such event.
Section 2 Books and Documentary Evidence
Article 32
Business entities selling goods or services shall issue uniform invoices to the purchaser at the time stipulated in "The Table of the Time Limits for Issuing Documentary Evidence of Sales" in this Act. Business entities of a special nature or small business entities may be exempted from issuing uniform invoices, and may, instead, issue ordinary receipts.
The list price set by a business entity for taxable goods or services shall be inclusive of the business tax.
Where a business entity calculates the output tax pursuant to Article 14, if the purchaser is a business entity, the output tax and the sales amount shall be stated separately on the uniform invoice; if the purchaser is not a business entity, the uniform invoice shall be issued at the list price.
The uniform invoice shall be printed and sold by the government, or the business entity may print its own invoices with approval from the government or issued, transmitted or obtained via the internet or by other electronic means. The forms, items to be recorded, and use of invoices shall be prescribed by the Ministry of Finance.
The competent tax authority may approve a business entity to use a cash register to issue uniform invoices or to issue cash register receipts instead of issuing uniform invoices on an item-by-item basis. Regulations governing the use of cash registers shall be provided by the Ministry of Finance.
Article 32-1
When Business entities sell goods or services and issues and transmits electronic uniform invoices under Paragraphs 4 of the preceding article, they shall upload the information of uniform invoices to the E-Invoice Platform of the Ministry of Finance; with respect to purchasers requesting uniform invoices by carriers which are approved by the competent tax authority, business entities shall upload the information of uniform invoices with the identification codes of carriers.
The carriers in the preceding paragraph denote the numbers used to record or connect the information of E-Invoice as follows:
1.National ID card numbers, the Citizen Digital Certificate numbers, phone numbers, and membership numbers of business entities or their partner institutions.
2.The payment instruments numbers of credit card, ATM card, electronic stored value card, and electronic payment account and so on, used by purchasers when trading.
3.Other numbers used to record or connect the information of E-Invoice.
The identification codes of carriers in Paragraph 1 denote the numbers used by the E-Invoice Platform of the Ministry of Finance to recognize the category of the carriers and the carriers in the preceding paragraph.
Article 33
A business entity which deducts input tax from output tax shall maintain the following documentary evidence with its name, address, and business administration number on such documents.
1. Uniform invoices specifying business tax paid on purchases of goods and services.
2. Uniform invoices specifying the amount of business tax issued by the business entity itself under the circumstances deemed as sales of goods or services as prescribed in paragraph 3 or paragraph 4 of Article 3.
3. Other documentary evidence specifying the amount of business tax and approved by the Ministry of Finance.
Article 34
The Ministry of Finance shall promulgate regulations governing the books of account and documentary evidence.
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.
Section 4 Inspection
Article 44
In the course of investigation performed by an inspector appointed by the Ministry of Finance, if a business entity is suspected of failing to issue uniform invoices when required to, the inspector shall record the violation at that locality, with specifications of name of the business entity, time, location, transacted item, and sales amount and refer the case to the competent tax authority so as to transmit the case to the court for imposition of penalty.
The records referred to in the preceding paragraph shall be signed by the business entity or the purchaser or the chop (seal) thereof shall be affixed thereto. In the case that both of them refuse to sign or affix their chop (seal), the inspector shall record such factual events.