Southern National Taxation Bureau said foreign e-commerce operators could apply for tax treaty benefits to exempt business profits.
Taiwan’s Southern National Taxation Bureau has reminded domestic enterprises that overseas e-commerce operators may qualify for tax reduction or exemption on business profits under comprehensive tax treaties, provided they meet the required conditions.
This announcement was made on 5 December 2025.
The Bureau noted that as cross-border online transactions continue to expand, domestic profit-seeking enterprises frequently purchase electronic services from foreign operators. When such payments constitute Taiwan-sourced income, the domestic enterprise, acting as the withholding agent, must withhold tax in accordance with the Income Tax Act.
However, if the foreign operator is located in a jurisdiction that has signed a comprehensive tax treaty with Taiwan, it may apply to have tax reduced or exempted under the treaty rules.
As of 31 October 2025, Taiwan has 35 comprehensive tax treaties in force. Foreign e-commerce operators established in these jurisdictions may request exemption on business profits derived from cross-border sales of electronic services to Taiwanese enterprises.
Applications may be filed either directly by the operator or through an authorised agent using the “Application for Tax Treaty Benefits for Business Profits Derived from Cross-Border Sales of Electronic Services by a Foreign Enterprise.” Supporting documents must include a certificate of residence issued by the relevant foreign tax authority, a copy of the contract, a power of attorney, and income-related documentation.
Applications should be submitted to the National Taxation Bureau office where the domestic payer is located.
If a domestic enterprise has already withheld and paid tax in accordance with standard withholding rates before the operator applies the tax treaty, it may seek a refund of any over-withheld tax after obtaining the approval letter confirming exemption of business profits.
The Bureau encouraged domestic enterprises dealing with overseas e-commerce operators to verify whether the operator’s jurisdiction has a comprehensive tax treaty with Taiwan and to apply for treaty benefits when eligible to reduce their tax burden.
Tax treaty information and application forms can be downloaded from the Bureau’s website under the “Tax Treaty Section,” or obtained via the toll-free service line 0800-000-321.
