The Southern District National Taxation Bureau has confirmed that transportation services for long-term care beneficiaries are exempt from business tax, while reminding operators to accurately declare income from non-qualifying services.
Taiwan’s Southern District National Taxation Bureau of the Ministry of Finance has said that small passenger car rental companies and passenger transport operators providing transportation services for long-term care beneficiaries are exempt from business tax, provided certain requirements are met.
Amid growing demand for long-term care services in an ageing society, many small passenger car rental companies and taxi operators have taken up providing transportation services for long-term care. The Bureau said operators qualifying as contracted long-term care units under Article 32-1 of the Long-Term Care Services Act — by signing administrative contracts with municipal or county (city) authorities — are exempt from business tax on transportation services provided under Article 11, Subparagraph 8 of the same Act.
These services include transporting long-term care beneficiaries between their homes and community-based long-term care institutions, or between their homes and medical facilities for treatment, regular rehabilitation, or dialysis. Such services are deemed social welfare services commissioned by the government and, under Article 8, Paragraph 1, Subparagraph 4 of the Value-Added and Non-Value-Added Business Tax Act, are exempt from business tax.
The Bureau reminded that if small passenger car rental companies or passenger transport operators also provide general passenger transport, rental, or other services not related to long-term care transportation, the income from those services remains subject to business tax. Operators, the Bureau said, must accurately declare their business tax returns based on the actual services provided and whether they qualify for the exemption when filing.
This announcement was made on 14 September 2026.
