The National Taxation Bureau of the Northern Area has reminded enterprises within the controlled foreign company (CFC) scope to submit audited financial statements with their corporate income tax returns during the annual filing period. Extensions of up to six months may be granted upon application, subject to approval and specific submission requirements.
Taiwan’s Northern Taiwan National Taxation Bureau of the Ministry of Finance announced that the filing period for the 2025 profit-seeking enterprise income tax return is from May 1 to May 31, 2026 (extended to June 1 if the deadline falls on a holiday). Enterprises that fall under the scope of Controlled Foreign Corporations (CFCs) must disclose relevant information in the prescribed format and attach CFC financial statements or other supporting documents verified and certified by a CPA when filing their tax returns.
The Bureau explained that if an enterprise cannot submit the CFC financial statements within the deadline, it must state the reasons and apply to the tax authority for an extension before the filing period ends. The extension may not exceed six months and can only be granted once. Enterprises may also directly check the box “Apply for extension to submit documents with this return” in Column A9 on Page B7 of the tax return form. Once approved, notification will be made by public announcement instead of an official letter.
The Bureau further clarified that when submitting CFC financial statements, enterprises must provide either paper copies or scanned copies saved on a CD, together with the “Receipt for CFC Financial Statements or Substitute Documents Verified by CPA” (this form can be downloaded and printed from the electronic filing software for profit-seeking enterprise income tax returns; it is only required for manual submission, not for electronic uploads). These documents should be submitted to the local branch, office, or service centre of the National Taxation Bureau. Enterprises that have applied for an extension must submit the documents within six months after the filing period ends (i.e., by December 1, 2026).
The Bureau emphasised that enterprises that do not apply for an extension must attach the CFC financial statements when filing their tax returns. Only then may they elect to defer recognition of gains or losses from CFC-held “financial instruments measured at fair value through profit or loss (FVPL)” until realisation, at which point they are included in the CFC’s annual earnings. Losses determined by the tax authority for each CFC may be carried forward for up to 10 years, starting from the year following the loss year, and deducted sequentially from the CFC’s annual earnings. In addition, the Bureau’s website provides a dedicated CFC section offering a CFC checklist and exchange rate inquiry services. Enterprises are encouraged to make use of these resources.
This announcement was made on 21 May 2026.
