On 25 February 2020, Taiwan’s Ministry of Finance (MOF) has issued several tax measures due to the outbreak of COVID-19. The main measures include the following:
Taxpayers who are affected by a COVID-19 and are unable to pay their tax contributions within the required payment period, have to complete an application form and submit an application to the tax collection agency. The extension of payment period will be from 1 month to 12 months with 2 to 36 installments (1 installment in 1 month). The extension applies is applicable for corporate income tax; individual income tax; value-added tax; commodity tax; special goods and services tax; house tax; land tax; and license tax. The prescribed taxpayers can apply for the extension from 15 January 2020 to 30 June 2021
Moreover, MOF declares corporate income tax 200% deduction for expenses incurred in the tax year on salaries and wages paid to employees who take leave for one of more in-scope reasons related to COVID-19. Proper documentation, including proof of salary payments and records of employees’ leave applications are required to claim the deduction.
