The Ministry of Finance on Thursday said it would next week announce plans to levy corporate income taxes on cross-border e-commerce operators in a bid to close loopholes that have allowed international e-commerce firms to evade taxes.
The plan is aimed at multinationals without physical outlets or offices in Taiwan, the ministry said in a statement.
International e-commerce operators often choose not to set up physical branches in overseas markets, but instead run their businesses on digital platforms, which enable them to dodge taxes.
Profits generated by foreign e-commerce companies, which sell services via the Internet or other electronic devices to Taiwanese consumers with the help of local enterprises or residents, should be subject to corporate income tax, the statement said.
The corporate income tax rate for this type of cross-border e-commerce company should be 20 percent, it said.
The levy is to take effect in May and income generated by such transactions this year should also be subject to the levy, it said.
The move marks another step toward preventing tax avoidance, after the ministry earlier this year began imposing a 5 percent business tax on cross-border transactions by e-commerce companies.
Foreign companies supplying e-commerce services to Taiwanese customers with annual sales of at least NT$480,000 are starting in May to be required to apply for business registration certificates and pay business taxes directly or indirectly, regardless of where they are based.
In December last year, the legislature passed an amendment to the Value-Added and Non-Value-Added Business Tax Act (加值型及非加值型營業稅法修正案) that requires international e-commerce operators to register their presence with the tax authorities or face a fine of up to NT$30,000.
The amendments are in line with the OECD’s base erosion and profit-shifting scheme, which aims to prevent tax avoidance by multinationals and resolve cross-border tax disputes.
PROTECTION: The investigation, which takes aim at exporters such as Canada, Germany and Brazil, came days after Trump unveiled tariff hikes on steel and aluminum products US President Donald Trump on Saturday ordered a probe into potential tariffs on lumber imports — a move threatening to stoke trade tensions — while also pushing for a domestic supply boost. Trump signed an executive order instructing US Secretary of Commerce Howard Lutnick to begin an investigation “to determine the effects on the national security of imports of timber, lumber and their derivative products.” The study might result in new tariffs being imposed, which would pile on top of existing levies. The investigation takes aim at exporters like Canada, Germany and Brazil, with White House officials earlier accusing these economies of
Teleperformance SE, the largest call-center operator in the world, is rolling out an artificial intelligence (AI) system that softens English-speaking Indian workers’ accents in real time in a move the company claims would make them more understandable. The technology, called accent translation, coupled with background noise cancelation, is being deployed in call centers in India, where workers provide customer support to some of Teleperformance’s international clients. The company provides outsourced customer support and content moderation to global companies including Apple Inc, ByteDance Ltd’s (字節跳動) TikTok and Samsung Electronics Co Ltd. “When you have an Indian agent on the line, sometimes it’s hard
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) would not produce its most advanced technologies in the US next year, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. Kuo made the comment during an appearance at the legislature, hours after the chipmaker announced that it would invest an additional US$100 billion to expand its manufacturing operations in the US. Asked by Taiwan People’s Party Legislator-at-large Chang Chi-kai (張啟楷) if TSMC would allow its most advanced technologies, the yet-to-be-released 2-nanometer and 1.6-nanometer processes, to go to the US in the near term, Kuo denied it. TSMC recently opened its first US factory, which produces 4-nanometer
‘SACRED MOUNTAIN’: The chipmaker can form joint ventures abroad, except in China, but like other firms, it needs government approval for large investments Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) needs government permission for any overseas joint ventures (JVs), but there are no restrictions on making the most advanced chips overseas other than for China, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. US media have said that TSMC, the world’s largest contract chipmaker and a major supplier to companies such as Apple Inc and Nvidia Corp, has been in talks for a stake in Intel Corp. Neither company has confirmed the talks, but US President Donald Trump has accused Taiwan of taking away the US’ semiconductor business and said he wants the industry back
RSS