On 26 August 2019, Taiwan’s National Taxation Bureau of the Northern Area (NTBNA) has issued a notice for domestic entities to pay business tax on e-services purchased from foreign providers. The notice clarifies about domestic business entity that purchase e-services from a foreign e-commerce business entity shall pay the business tax in accordance with Article 36 of Business Tax Act.
NTBNA states that foreign enterprises, institutions, groups, or organizations that have no fixed business place within the territory and provides e-services to domestic individuals should complete taxation declaration and pay for the business tax starting from 1 May 2017, if the annual sales amount thereof exceeds NTD 480,000.
NTBNA also clarifies about specific sector, where the business entities get exemption and where to pay tax. If any entities fail to pay tax on time, a penalty may be imposed thereon.
