Taiwan’s Taipei National Taxation Bureau of the Ministry of Finance has clarified that businesses renting out property or equipment must calculate interest on security deposits and issue uniform invoices to report and pay business tax, with options for monthly or annual calculation based on prescribed rules.
Taiwan’s Taipei National Taxation Bureau of the Ministry of Finance stated that when businesses rent out property and collect deposits, they must calculate interest on the deposits and issue uniform invoices to report and pay business tax.
The Bureau explained that for deposits collected when leasing real estate or equipment, businesses must calculate deposit interest at the end of each month based on the one-year fixed interest rate for postal savings deposits as of 1 January of that year (no calculation is required for periods shorter than one month).
They must then issue a uniform invoice to the lessee and report and pay business tax. However, if the deposit interest amounts are small and scattered, businesses may instead calculate deposit interest annually. In such cases, they should issue a uniform invoice in the first month of the year for the full year’s deposit interest and report and pay business tax, thereby simplifying invoicing and reporting procedures.
The Bureau reminded businesses that if they collect deposits when renting out property but fail to calculate deposit interest and issue uniform invoices as required, they may voluntarily report and pay the omitted tax to their local tax bureau branch, office, or service center before being reported or investigated by tax authorities or designated investigators of the Ministry of Finance. In such cases, under Article 48-1 of the Tax Collection Act, they will be required to pay interest but will be exempt from penalties.
This announcement was made today, 17 April 2026.
